The Next Shoe to Drop

Discussion in 'Wall St. News' started by ipatent, Jan 19, 2009.

  1. ipatent


    <p><a href=";sid=aiwq7VkA9Yds&amp;refer=home">Merrill to Pay $550 Million to Settle Subprime Mortgage Suits</a></p>
    <p>Jan. 17 (Bloomberg) -- Merrill Lynch &amp; Co. will pay $550 million to settle claims by the Ohio State Teachers Retirement System and other shareholders that it misled investors about assets backed by subprime mortgages.<br />
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    Merrill, which was acquired by Bank of America Corp., will pay $475 million in cash to investors including the teachers union fund and $75 million in cash to settle claims by company employees who held stock in certain retirement plans, the company said yesterday in a filing with the U.S. Securities and Exchange Commission. Claims in the suits focused on subprime- related losses and related disclosures between September 2006 and December 2008.<br />
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    The company was accused of issuing false and misleading statements about collateralized debt obligations and other assets backed by subprime mortgages, artificially inflating Merrill Lynch&rsquo;s shares, according to the complaints filed in federal court in Manhattan.</p>
    <p>Now take this settlement, which is limited to the Ohio Teachers Retirement System and extrapolate it to all of the sellers and buyers of subprime CDOs, including foreign banks.&nbsp; How much exposure do Goldman, MS and Citi have?</p>
  2. lol more bearish nonsense. no more shoes to drop.