September 1, 2008
ARS;Cutting the Lawsuit Horses off at the Pass!
Analysis of:
Billions Not for the Plaintiffs Bar | www.law.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Will ARS settlements minimize potential lawsuits & regulatory review?
Analysis: Is the concept of buybacks in the ARS disaster really such a novel approach to risk management? With the market & economy the way it is, this is certainly not the type of case you want to defend in court. Some say this is worse than the used car salesman, in that many over zealous brokers puffed up the liquidity aspect of these type investments. What is always interesting is that few had any negative input when all was going according to Hoyle. The settlements in these ARS cases will clearly take the wind out of any ones sails, especially the typical cast of class action attorneys, relative to either a lawsuit or investigation. Any form of common damages will be minimized or become nonexistent. Problem is are we really just sweeping the real issue under the rug? Should some safeguards be enhanced to prevent this from occurring again? If not in the form of fines, then modifying the governing rules & regulations. Nonetheless, it is always refreshing to see entities step up to the plate in lieu of having to take the dispute to court. While one doubts it was out of the kindness of their heart or what is ethically & morally appropriate, it is just the same a good way of resolving what should be resolved. If for know other reason than to stop the flood gate of litigation & fueling an already problematic situation. http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080422/REG/323114373/1010/rss01&rssfeed=rss01
Analysis: Is the concept of buybacks in the ARS disaster really such a novel approach to risk management? With the market & economy the way it is, this is certainly not the type of case you want to defend in court. Some say this is worse than the used car salesman, in that many over zealous brokers puffed up the liquidity aspect of these type investments. What is always interesting is that few had any negative input when all was going according to Hoyle. The settlements in these ARS cases will clearly take the wind out of any ones sails, especially the typical cast of class action attorneys, relative to either a lawsuit or investigation. Any form of common damages will be minimized or become nonexistent. Problem is are we really just sweeping the real issue under the rug? Should some safeguards be enhanced to prevent this from occurring again? If not in the form of fines, then modifying the governing rules & regulations. Nonetheless, it is always refreshing to see entities step up to the plate in lieu of having to take the dispute to court. While one doubts it was out of the kindness of their heart or what is ethically & morally appropriate, it is just the same a good way of resolving what should be resolved. If for know other reason than to stop the flood gate of litigation & fueling an already problematic situation. http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080422/REG/323114373/1010/rss01&rssfeed=rss01
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