Capsule: John C. Coffee, Columbia Law School

In 2009, look for an increase in individual lawsuits, rather than class actions, filed by institutional investors such as pension funds and insurance companies in litigation stemming from the subprime debacle.
JAN 04, 2009
By  Bloomberg
JOHN C. COFFEE Adolf A. Berle professor of law Columbia Law School New York General outlook: In 2009, look for an increase in individual lawsuits, rather than class actions, filed by institutional investors such as pension funds and insurance companies in litigation stemming from the subprime debacle, Mr. Coffee said. "Big institutions don't want to be submerged in a class action," he said. "The crisis was in the debt markets, so it's the big institutions that are the purchasers." Those investors will focus their litigation on the underwriters of such debt as collateralized debt obligations or the investment banks that offered special private transactions, Mr. Coffee added. Next big trend: An increase in litigation involving the subprime crisis. Biggest concern: The change in political control in Washington, with Democrats controlling both Congress and the White House, may lead to increased regulatory pressure on the securities industry. Reading, watching, listening to: TV : NFL football.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave