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Credit Crisis Cases Still a Major Problem for Major Firms

As the summer winds down, securities class actions are heating up.  On the heels of the $627 million Wachovia settlement comes news that Lloyd Blankfein and other Goldman execs have hired their own lawyers as the firm faces suits from just about every level of government, from the Manhattan district attorney to the SEC, with the New York AG in between.

Deutsche Bank faces some very serious allegations from the Department of Justice that it knew a mortgage company it purchased had lied to the US Government about the health of its mortgages.

And Bank of America faces yet another billion dollar plus mortgage-backed securities litigation (in this case, it's $1.75 billion.)  Can a week go buy without more bad news for Bank of America?  Probably not.

In the Goldman Sachs and Deutsche Bank matters, you can be assured that plaintiff's attorneys are watching every move--and reading every document.  Civil cases are already pending against the firms, and more could very well spring from these government inquiries.

So great ready.  These waves aren't going to stop any time soon.