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Brett Sherman
NYC Metro Area
Stock fraud attorney representing investors in securities fraud lawsuits and FINRA arbitrations.
Interests: music, finance, movies., reading, sports, family, cutting edge technology for the legal profession
Recent Activity
Loss Frequency v. Loss Magnitude - A Financial Risk Management Lesson
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In finance, risk is the chance that an investment decision or strategy will result in loss. Any analysis of risk must consider two major elements - FREQUENCY OF LOSS and MAGNITUDE OF LOSS. Continue reading
Posted Apr 5, 2013 at Wall Street Law Blog
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We found the Right Guy to Prosecute the Banksters...
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In the good old days, prosecutors prosecuted and crime didn't pay. It was, we think, Teddy Roosevelt, who said "no man is above the law..." So what gives? Our hypothesis is that there is a big correlation between the ongoing scandals that plague Wall Street and the fact that not one big financial services executive resides in federal prison. Continue reading
Posted Dec 27, 2012 at Wall Street Law Blog
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Traders hate risk limits! (a lesson in risk management)
The point of risk limits is to make sure that no one trade - or series of related trades - can generate losses big enough to cripple, or even kill, a financial institution Continue reading
Posted Dec 16, 2012 at Wall Street Law Blog
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Bear Stearns: Why civil action, not criminal?
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In a civil action, a plaintiff (there is no prosecutor in the civil case) must meet the preponderance of the evidence standard in order to win. What is a preponderance of the evidence? 51%. AG Schneiderman has, in other words, a pretty big margin of error. Continue reading
Posted Oct 3, 2012 at Wall Street Law Blog
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Bespeaks Caution- no such thing as a Safe Harbor if The Sea is Already Angry, My Friend
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Some harbors are safer than others... Filling a prospectus with risk factors won't always protect you. Remember, risk warnings are all about uncertainty, and uncertainty -- at least in this context -- means uncertainty about the future. If you know, or should know, that something you described as a risk... Continue reading
Posted Sep 13, 2012 at Wall Street Law Blog
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Rampant Securities Fraud - Why it Exists; How to Stop It...
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Life is about playing by rules. Sometimes we make a pact to voluntarily follow a set of rules - like when we play golf or tennis or darts or ping pong. Other times we are requited to obey a rule regardless of whether following the rule is something we want... Continue reading
Posted Sep 11, 2012 at Wall Street Law Blog
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My 9/11 - A Lucky Escape from Two World Trade Center, 65th Floor
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Seconds later came a thunderous explosion, the loudest sound I have ever heard. Then, almost immediately, a shockwave radiated out from the blast. The windows on my floor rattled. The building shuddered. Right away we knew. A plane - a jet plane - had slammed into One WTC. Continue reading
Posted Sep 10, 2012 at Wall Street Law Blog
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Statistics Reveal that Many Bear Stearns Employees Should Consider class action settlement opt out
IN LIGHT OF THE JUST ANNOUNCED SETTLEMENT OF BEAR STEARNS SHAREHOLDER CLASS ACTION CLAIMS, WE ARE REPRINTING OUR MAY 2008 PRESS RELEASE ABOUT THE OPT OUT ALTERNATIVE --------- New York, NY (PRWEB) May 12, 2008 Based on a recently completed statistical study, The Sherman Law Firm has concluded that Bear... Continue reading
Posted Jun 8, 2012 at Wall Street Law Blog
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What did Jamie Dimon Tell Charlie Rose?
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Some interesting things... Let's just say that this is one of those glass houses/stone throwing morality tales... JPMorgan Chase CEO Jamie Dimon Appeared on the Charlie Rose Program in the summer of 2008 to talk about Risk-Taking, Risk-Management, and the risks taken by the then Recently Acquired Bear Stearns. In... Continue reading
Posted Jun 8, 2012 at Wall Street Law Blog
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Talking JPMorgan Debacle, Latest Evidence of Fraud at Bear Stearns and the Meaning of Securities Fraud
Internet Killed The Radio Star WallStLawBlog (@WallStLawBlog) 6/4/12 11:54 PM Me on Maureen Ennor's talk show from today, talking securities fraud blogtalkradio.com/wallstreetmom/… Continue reading
Posted Jun 4, 2012 at Wall Street Law Blog
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BEAR STEARNS BELIEVED IT BOUGHT CREDIT RATINGS
Credit Ratings Shopping Clear? Wall Street Law Blog Thinks So By Brett Sherman Several complaints filed against Bear Stearns, its former subsidiaries, and/or JP Morgan by monoline Insurers like Assured Guaranty and Ambac describe a rather revealing reaction by Bear Stearns to October 2007 decisions by credit ratings agencies S&P... Continue reading
Posted Jun 1, 2012 at Wall Street Law Blog
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The Fraudulent Branding of Bear Stearns (a call to action)
DECEIT IS THE ESSENCE OF FRAUD. At Bear Stearns, senior management spent years deceiving investors. And boy was it ever worth it... Former Bear Stearns CEO - consummate salesman and card-sharp Jimmy Cayne - led a campaign to brand Bear Stearns. Under Cayne, Management worked damn hard to convince investors,... Continue reading
Posted May 31, 2012 at Wall Street Law Blog
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Did JPMorgan Commit Securities Fraud? Don't Overlook This Basic Analysis.
There are myriad ways in which J.P. Morgan’s “hedge” could be securities fraud. Here's an easy one... At the most basic level, the fact that JPMorgan made (giving the bank the benefit of the doubt) such a massive risk management error may, in and of itself, be proof of fraud.... Continue reading
Posted May 16, 2012 at Wall Street Law Blog
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Reconcile This: Former Bear Stearns Exec. Either Lied to FCIC or Pulled An Ollie North
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Lying Under Oath to The Financial Crisis Inquiry Commission is the Equivilent of Perjury. The Law: United States Code, Title 18, Section 1001: "Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals work covers up by any trick,... Continue reading
Posted May 11, 2012 at Wall Street Law Blog
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Subprime Analysis by Salomon Brothers, May 1994: Return of the Wall Street Law Blog Time Machine
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From the Horse's Mouth? Fascinating 1994 Report on Subprime MBS From Salomon Brothers, The Firm That Coined the Term Securitization. Continue reading
Posted Mar 27, 2012 at Wall Street Law Blog
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Fraudulent AAA Credit Ratings Have Many Tentacles, Don't They?
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The year? 2006. Hypothetical Bank X - knowing that AAA ratings on mortgage-backed securities on its balance sheet were bogus - accounts for the bonds in the annual report as if the bonds were virtually, if not entirely, riskless. If so, how could the annual report be anything other than materially misleading (i.e., fraudulent)? Continue reading
Posted Mar 14, 2012 at Wall Street Law Blog
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Bear Stearns Planned to Dance Like Former Citi CEO Chuck Prince.
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at the 2005 conference Bear Stearns senior managing director Scott Eichel said "[t]here is a [CDO] machine going..." Indeed, the Bear mortgage guys were saying stuff that sounded a lot like Citi's former CEO Chuck Prince. Speaking about the risks of the CDO market, Prince infamously said his company would keep dancing until the music stopped. Continue reading
Posted Mar 13, 2012 at Wall Street Law Blog
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The New Wildcard: Major League Baseball's Worst Call
Extra Wildcard Is an OK Idea, but The Plan is All Wrong. Let's see - 162 game season; unbalanced schedule; 1 game playoff? Hypothetical: Let's say the NL East is the best division in the Sr. Circuit. True, the Mets couldn't win a little league title, but the other 4... Continue reading
Posted Mar 6, 2012 at Wall Street Law Blog
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When is a prime mortgage not a prime mortgage? A different take on contagion... (update 1)
But did you know that the number of prime borrowers went way up during the golden age of subprime? It's true. Credit scores spiked in the first half of the 2000s. This period of credit score inflation meant lots of high-risk borrowers could qualify for prime mortgages. Continue reading
Posted Mar 4, 2012 at Wall Street Law Blog
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Difference maker? An Admission that Bear Stearns Chose Not to Share With Its Shareholders (Corrected)
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-Warning: If you owned shares of BSC (the former NYSE ticker symbol for Bear Stearns common stock) when Bear's share price was falling during 2007 and early 2008, you may be somewhat pissed off by an admission that Bear made to the SEC. If I had owned shares of BSC,... Continue reading
Posted Feb 10, 2012 at Wall Street Law Blog
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Giants Win Makes Eagles fan Seek Help from Red Sox Nation
CAN BOSTON FANS HELP OUT A PHILLY BOY? My name is [REDACTED ON ACCOUNT OF SHAME] and I am a fan of the Philadelphia Eagles. Since Sunday night, I feel like acid is burning a hole in my gut. Hopefully it is one of those psychosomatic thngs, but who the... Continue reading
Posted Feb 8, 2012 at Wall Street Law Blog
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Bottle Of Wine Key To Understanding Subprime Debacle
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Mortgage securitization for Dummies? Not exactly. However, the diagram featured in this post - a tipped wine bottle floating above an inverted pyramid of wine glasses - really simplifies the migraine-inducing terminology and key concepts of mortgage securitization. Continue reading
Posted Feb 4, 2012 at Wall Street Law Blog
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Bear Stearns Report: Relative to Income, Home Prices "About as stretched as [they have] ever been!"
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Another in an occasional series in which Wall Street Law Blog posts excerpts from primary source documents that flat out contradict Wall Street's revisionist history of the financial crisis... Top executives at Bear Stearns - as we like to point out - have repeatedly insisted (including in sworn testimony) that... Continue reading
Posted Jan 27, 2012 at Wall Street Law Blog
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The Great Mortgage Swindle: Most Lucrative Fraud of All Time?
Turns out, we now know, that the big securitizers knew there was a significant distinction between the toxic AAA rated securities which the banks pushed like drug dealers and other AAA quality investments. While a majority of mortgage bonds were rated AAA, the bankers that designed, manufactured, and sold these mortgage bonds knew the AAA ratings they received were pure bs Continue reading
Posted Jan 17, 2012 at Wall Street Law Blog
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Leverage, the Downside; An attempt to simplify (Our top 5 posts of 2011)
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Here is the kicker - the reason why it is incredibly risky for a company to to have equity represent only 3% of its balance sheet... Creditors have superior claims to equity-holders (typically shareholders). IN OTHER WORDS, LOSSES ARE, AS A RULE, ALLOCATED TO SHAREHOLDERS ONLY UNTIL ALL EQUITY IS GONE. Continue reading
Posted Dec 29, 2011 at Wall Street Law Blog
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