I’d like to point out that Treasury just hired as of yesterday “Merrill Lynch, Pierce, Fenner & Smith Incorporated, et al” as AIG joint bookrunner & global coordinators: http://www.treasury.gov/press-center/press-releases/Pages/tg1700.aspx …
Yes, pretty much all of the parties hired are named in the complaints below.
Via Matt Weidner-
This is an action for damages caused by violation of the Texas Securities Act
(TSA) and the Securities Act of 1933 (1933 Act) by the defendants. As alleged in detail below,
defendants issued, underwrote, or sold eight securities known as “certificates,” which were
backed by collateral pools of residential mortgage loans. Guaranty Bank (Guaranty) paid
approximately $1.5 billion for the eight certificates. When they issued, underwrote, or sold the
certificates, the defendants made numerous statements of material fact about the certificates and,
in particular, about the credit quality of the mortgage loans that backed them. Many of those
statements were untrue. Moreover, the defendants omitted to state many material facts that were
necessary in order to make their statements not misleading. For example, the defendants made
untrue statements or omitted important information about such material facts as the loan-to-value
ratios of the mortgage loans, the extent to which appraisals of the properties that secured the
loans were performed in compliance with professional appraisal standards, the number of
borrowers who did not live in the houses that secured their loans (that is, the number of
properties that were not primary residences), and the extent to which the entities that made the
loans disregarded their own standards in doing so.