It is not easy to defend against a charge of fraud

You see, they will bombard Wall Street. "This will become a Court of complainants," says Jamie Wareham, patron of the litigation in the Paul Hastings law firm. The legal departments of financial institutions New Yorkers prepare to face an onslaught of complaints, and their lawyers with. "In the first quarter, there were 169 complaints for disputes relating to securities, shares or bonds, 125 in the fourth quarter 2008" "Most of them were directed against financial institutions", observes Keith Miller, financial Chief of the litigation practice at Paul Hastings.

In the wake of the crisis and the "sub-prime" scandal Madoff, a new law, the "Fraud Enforcement Recovery Act", was approved by both houses, but its final version, unified, must still be passed. This text will change the Federal legislation on fraud, litigation on financial products, money laundering and is intended to cover various scams more widely on mortgage and loans. It also provides additional financial resources ($500 million) to various agencies to increase their staff and recover public money if necessary. This makes it much more "sensitive" environment, including for some real credit providers that issued thousands of credits on the basis of allegations (their or those borrowers) which may be subject to caution.

All kinds of disputes are. One recently filed complaints is related to a "credit default swaps" a financial product assurance to verify if the procedures to prevent the dissemination of information within an organization have been met, said Keith Miller. If there is still little disputes to bankruptcy, they should be more in the coming months. Sixty banks are passed under the authority of the Federal Deposit Insurance Commission since 2008 and it has three years to file a complaint against the leaders or their listeners if it deems it necessary.

"A new COP in town".

Similarly, the litigation on the sale of certain securities price could explode while shareholders or bondholders will challenge operations who have cheated. "There was a massive number of transactions, and much investment went wrong, says Jamie Wareham." It is not easy to defend against a charge of fraud. Fortunately, the judges understand that he there other factors that may explain why investment has turned into ash. "A new legislation pending, credit cards, could also lead to new litigation.

Finally, financial institutions see the creation of a Special Inspector General for the Troubled Assets Relief Program (TARP) of an evil eye. Neil Barofski, appointed in December, is investigating about 20 cases of fraud on the use of the public fund of $ 700 billion. His Office sent 367 requests for information to various institutions. A company that would have repaid the TARP money is still subject to prosecution if it is discovered that she had lied. "It is a new COP in town," said Jamie Wareham, and this adds new legal risks for companies.

Wall Street is not alone in the sights. A first criminal complaint was filed by the Office of the Special Inspector General, the end of April, against a small investor in Tennessee who was selling financial products under the TARP.

Former number two of the Office of the Attorney General of New York, Andrew Cuomo, Neil Barofski has indicated that it would cooperate closely with the first inquiry on Merrill Lynch-Bank of America. Launched on the issue of 3 billion of bonuses to the employees of the Investment Bank, it has since scope on the role that the Federal Reserve and Treasury have played in the redemption and the threats that Henry Paulson, the former Secretary to the Treasury, would have to complete the operation. The Congress has been seized of the matter and may act soon.