Dimond Kaplan & Rothstein, P.A. Attorneys At Law
Saturday, May 17, 2008

Sub Prime Investments

Florida Investment Loss Attorney

Hedge Funds ∙ Sub Prime Mortgages ∙ Asset Backed Securities

The recent fall of sub prime mortgages has greatly impacted the mortgage-backed securities investment markets. Individual investors and hedge fund investors have lost millions and even billions of dollars as a result of defaulted sub prime mortgages and CMO investments. The attorneys at DIMOND KAPLAN & ROTHSTEIN, P.A., represent investors who have lost retirement funds and life fortunes as a result of these investments. Contact our securities law attorneys for a free consultation.

Overcoming the Collapse of Sub Prime Mortgages

In years past, the Federal Reserve slashed interest rates. As a result, lenders increased the number of higher-risk investments and consumers took mortgages that they couldn't afford. These mortgages and other asset backed securities were sold to investors, pension funds, and hedge funds as collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), and other and mortgage-backed securities (MBSs). When interests rates rose and masses of loans went into default, so too did many sub prime investments and other mortgage-related bonds.

We handle investment matters involving all forms of sub prime mortgages and asset backed securities, such as:

  • Securities backed by consolidated sub prime mortgages
  • Cash flows by airplane leases
  • Cash flows by equipment leases
  • Collateralized securities
  • Other asset backed securities

Brokers and brokerage firms have a duty to invest wisely on behalf of investors. Investing in high risk or unsuitable investments may be misconduct. Investors at brokerage firms such as Bear Stearns, Brookstreet, Samco Financial Services, JLS Financial Investment Corporation, Penson, have lost millions of dollars as a result of improper sales, trading, and pricing of CMOs and other mortgage-backed securities. And clearing firms such as National Financial Services (NFS) are believed to have taken part in the improper pricing and trading of CMOs. At DKR, our securities lawyers help investors recover investment losses by holding brokers and brokerage firms accountable for their negligent investment practices.

If you have suffered severe investment losses to defaulted sub prime mortgages or other asset backed securities, consult with the securities lawyers at DKR today. Call 1-888-578-6255 or e-mail us to schedule a free consultation. While we concentrate on representing investors in the South Florida area of Fort Lauderdale and Miami, we are capable of effectively representing clients throughout the nation.

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