Archive for June, 2008
Is Any Company Safe from Subprime Related Lawsuits?
…He cites as examples appraisers, “fee hungry” mortgage brokers, and
real estate agents who participated in putting home buyers into subprime
mortgages they could not afford.
There may also be, as Lenckus
puts it, an unknown number of “widget manufacturers”
which bought various mortgage- backed financial instruments as
investments that must now be devalued. This will impact the company’s
bottom line and provide an impetus for shareholder suits.
Even
companies that did not invest in subprime instruments
may be vulnerable…
Treasury’s Paulson Says Fed’s Role Must be as a Stabilizer
Speaking to journalists en route to Berlin, Treasury Secretary
Henry Paulson said that his speech on July 2 will focus
on the Federal Reserve’s role as a macro stability regulator.
Paulson said that speech will focus on the Federal Reserve’s process
for intervening in financial affairs and that any
intervention by the Fed must be paired with market discipline.