Subprime Investments

Florida Investment Loss Attorneys

Subprime Mortgages ∙ Asset-Backed Securities

Brokers and brokerage firms have a duty to invest wisely and in line with investors' risk profiles. Investing in high-risk investments can be a form of broker misconduct. In the case of subprime mortgages and asset-backed securities, the misconduct reached staggering proportions.

The collapse of subprime mortgages

When the housing market was booming, asset-backed securities were sold to individual investors, pension funds, and hedge funds as collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), and mortgage-backed securities (MBSs). When interests rates rose and masses of loans (often subprime loans) went into default, so too did many mortgage-related bonds.

The collapse of the subprime mortgage market had a tremendous negative effect on the mortgage-backed securities investment market. Individual investors and pension fund investors lost millions — even billions — of dollars as a result of the collapse of subprime mortgage and CMO investments that most investors (and even many brokers) did not understand.

Investors at brokerage firms such as Bear Stearns, Brookstreet, Samco Financial Services, JLS Financial Investment Corporation, and Penson Financial Services, Inc. lost millions of dollars as a result of of CMOs and other mortgage-backed securities. Clearing firms such as National Financial Services (NFS) are believed to have taken part in the improper pricing and trading of CMOs.

The securities fraud attorneys at Dimond, Kaplan & Rothstein, P.A. (DKR) represent investors who have lost retirement funds and their life's fortunes as a result of subprime mortgage investments. Our securities lawyers help investors recover investment losses by holding brokers and brokerage firms accountable for their negligent investment practices. Contact our Miami or West Palm Beach securities law office for a free consultation.

We handle investor loss claims regarding all forms of sub prime mortgages and asset-backed securities, such as:

• Securities backed by consolidated subprime mortgages
• Cash flows by airplane leases
• Cash flows by equipment leases
• Collateralized securities
• Other asset-backed securities

If you were not informed of the excessive risk of subprime mortgages and asset-backed securities and suffered severe investment losses, contact an attorney experienced in stockbroker liability at DKR. While we concentrate on representing investors in the South Florida areas of Fort Lauderdale and Miami, we are capable of effectively representing clients across the nation. Call 888.578.6255 to discuss your subprime mortgage securities fraud claim.