The Birth of Loan Securitization
Loan securitization rose from the ashes of the savings-and-loan crisis in the mid-to-late 1980s. It was a time when failed thrifts were desperately trying to get illiquid assets off their balance sheets. The author of House of Cards, William D. Cohan, says that this became the birth of loan securitization. It got assets off the thrifts’ balance sheets and gave them some liquidity, so they could keep operating.
The first such loan securitization of subprime loans was underwritten in October of 1997 by Bear Stearns and First Union Capital Markets. And Freddie Mac guaranteed the payments on the first securities. Bear was instrumental in getting the market to dramatically change by getting Fannie and Freddie to directly issue REMICs, real-estate mortgage investment contracts.Our Practices
- Asbestos
- Class Actions
- Commercial Litigation
- Defective Products
- Drug Injury
- Personal Injury
- Securities Fraud
- Toxic Exposure
Current Investigations
- Accutane Side Effects
- Darvon and Darvocet
- DePuy Hip Recall
- Fosamax Femur Fractures
- Muscle Injury
- Sleeping Pill Dangers
- SSRI Birth Defects
- Topamax Birth Defects
- Transvaginal Surgical Mesh and Bladder Slings
- Tylenol Liver Damage
- Zocor/Simvastatin
Pending Settlements
