More Law Firms Seek to Sue Banks
Posted Nov 14, 2007 1:52 PM CST
By Martha Neil
After the subprime mortgage meltdown in the U.S. and a resulting worldwide credit crunch worsens, a traditional law firm taboo against suing banks has been relaxed as related litigation looms.
A growing number of well-known law firms in the U.S. and U.K. are now ready to take such cases despite the risk of alienating lucrative bank clients, the London Times reports today. And, as discussed in a previous ABAJournal.com post, there are at least two other law firms that should also be appended.
"Opinion is divided over how much litigation will actually emerge as a result of the summer's financial crisis," the British newspaper writes. It notes, however, that "Litigators say there has been an increase in inquiries from disgruntled investors who claim they were sold low-risk assets that ended up being worthless repackaged American mortgages. Similarly, banking and corporate partners at large firms are starting to refer concerned clients on to their litigation teams for advice on where they stand now that the market has changed."