Washington, D.C., partner and head of the firm's Subprime Lending Litigation Practice Team, Fritz Chockley, authored an article for the November 10, 2008, edition of Bank & Lender Liability titled, "Complexity of Credit Crisis Drives Litigation." According to Chockley: "The highly intricate and esoteric nature of the transactions underlying the credit crisis not only led to its eventual occurrence, but continues to make assessing its impact extremely difficult. This complexity continues to characterize the credit crisis as the financial markets move forward in dealing with the aftermath of large financial losses, increased scrutiny by the marketplace and regulators, and, in many cases, litigation. And because the crisis has mushroomed so far from its subprime origins, the litigation concerns that follow will affect businesses with only remote ties to the subprime mortgage industry." "While the specter of litigation looms over many," states Chockley, "an anticipatory approach can minimize the ultimate burden. By taking proactive steps and remaining vigilant regarding current developments in the marketplace, savvy institutions can brace themselves for the upcoming storms." The article goes on to outline the roots of the credit crisis, and the various "players" which contributed to the current situation. Chockley offers advice on "a few critical steps that savvy companies should take to minimize their losses" in the face of possible impending litigation.
"Current indications suggest that many more [lawsuits] will be filed in the coming months," concludes Chockley. "As more firms get dragged into the fray, preparing for the possibility of legal action or investigation is not only wise but necessary. In light of the highly complex issues involved in the subprime mortgage meltdown, there are no quick and easy remedies for claims from frustrated investors and other would-be plaintiffs, but a proactive approach is the best way to prepare for coming litigation."