Jerry Silk Discusses Questionable Sales of Mortgage Bonds by Banks in The New York Times
February 10, 2011
In its article, "Handling of Mortgage Payments Questioned," The New York Times interviewed BLB&G partner Jerry Silk regarding his view on allegations that banks may have "double-dipped" by selling a mortgage into a mortgage bond at full price and also pocketing a settlement for that same mortgage when it went sour, a theory recently unveiled after a lawsuit against a mortgage unit at Bear Stearns was unsealed. Mr. Silk, who is involved in numerous cases against banks through his representation of mortgage investors, explains that the firm has "heard this a lot, and we're trying to prove it. It would be a home run for us."
The article relates that, due to an increase of mortgage defaults around 2005, banks agreed to drop their requests that mortgage originators repurchase delinquent loans in exchange for partial payments, or a discount on future loan purchase from the mortgage originators. How the banks used these partial payments and discounts remains unclear, but according to Mr. Silk, if the banks "knew the loans were defaulting, the money should have been passed on to investors."
Mr. Silk's practice focuses on representing institutional investors on matters involving federal and state securities laws, accountants' liability and the fiduciary duties of corporate officials. He is one of the partners who oversee the firm's new matter department, in which he counsels institutional clients on potential legal claims. As head of the firm's Subprime Litigation Group, Mr. Silk is leading the efforts to address the substantial shareholder losses resulting from the collapse of the subprime mortgage sector. He is currently advising institutional investors worldwide on their rights with respect to numerous claims involving transactions in residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs).
External Link: http://www.nytimes.com/2011/02/10/business/10mortg… (link will open in a new window)
Also of Interest
Benchmark Names Eight BLB&G Partners as Litigation Stars
Benchmark Once Again Names Seven BLB&G “Litigation Stars”
20 BLB&G Attorneys Named by Super Lawyers to its 2018 New York Metro Edition
ISS SCAS Releases Top Securities Settlements Report: Bernstein Litowitz Leads the Field for Ninth Consecutive Year
February 11, 2019
Benchmark Names Seven BLB&G “Litigation Stars”
The National Law Journal Profiles BLB&G – Winner of Financial Litigation Elite Trial Lawyers Award
December 19, 2016
Chambers Again Ranks BLB&G Among Nation’s Top Securities Litigation Firms
Chambers Again Ranks BLB&G Nation’s Top Securities Litigation Firm
April 25, 2019
Super Lawyers Names 21 BLB&G Attorneys to its 2017 New York Metro Edition
September 20, 2017
Salvatore Graziano named among Top 100 Attorneys in Super Lawyers 2018 New York Metro Edition