When Brokers Go Broke

Law360, New York (April 11, 2008, 12:00 AM EDT) -- As the subprime crisis worsens, more stockbrokers can expect to face the intricacies and special quirks that attend brokerage bankruptcies, say Charles M. Oellermann and Mark G. Douglas of Jones Day.

By almost every estimate, the fallout from the subprime mortgage/investment disaster has proved to be worse than anticipated, numbering among its casualties over 50 mortgage lenders as well as venerable 85-year old Wall Street icon Bear Stearns Cos. Inc.

Once the fifth largest securities firm in the U.S., Bear Stearns provisionally agreed to be acquired...
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