I seriously wonder if there will be recourse; both for the investors AND the ratings agencies without whose blessings these things could never have been peddled. There is al most certainly well-crafted exclusionary language all over the place in the sales materials. I have been thinking and predicting that the residue of this carnage would be multiple, multi-year lawsuits piled up, primarily against the ratings agencies (Fitch, Moody’s, S&P) I brought this up to an attorney today and he dismissed the idea out of hand, saying the sales lit unquestionably had all manner of liability disclaimers all over it. The best that Wall St. could buy. Most likely, holders of this sludge will end up SOL.
It will be interesting. I am not sure how sympathetic all these foreign courts are gonna be to American corporations. Hatred and jealously can easily overcome well written legal disclaimers. Too many judges rule with their feelings instead of the black and white language.