John Beaty and John Cooney authored "The Pattern of the Fall: An early guide to upcoming subprime litigation," an article published in the February 28, 2008 issue of Bankstocks.com. The article provides an explanatory overview of the imminent "tsunami of litigation" associated with the subprime mortgage market and housing market meltdowns.
Investment banks are going to sue lenders, who in turn will sue certain individual borrowers, who will then turn around and sue the lenders right back. Servicers, appraisers, and insurers will all get into the act in one way or another. ABS investors, meanwhile, will sue the investment banks. And the regulators, from what we can tell, will sue nearly everyone.
It is going to be quite a spectacle, that will stretch out for years.