For banks and brokers, it’s a mad, mad, mad, mad world these days. Financial institutions have recorded more than $50 billion of loan losses and writedowns, and total losses could top $400 billion.
Banks and brokers are suffering, but so are investors. Nobody likes losing money in bad securities, but when fraud, mismanagement, or lax underwriting may have played a part in the proceedings, banks can find themselves in the witness box in all kinds of class-action lawsuits. At times like these, every bank needs some sage legal counsel.
One great thing about New York–wherever there’s a problem, there’s a panel of experts to guide you. On November 28, a panel including P.J. Mode, a special counsel to Citigroup, will discuss defending against legal liability to investors, the government, and customers.
Citigroup said last week that it could write down $8 billion to $11 billion of assets linked to subprime mortages in the fourth quarter, and is already facing lawsuits seeking class action status. Citi has said the claims are without merit, and it will defend itself vigorously.