The case One William Street Capital Master Fund Ltd. et al. v. JPMorgan Chase Bank, N.A. et al, discussed in this article, was dismissed in a one-page order by the court in the Southern District of New York on the same day the article was published. The court said it will explain its reasoning in a full order to follow.
Investors in subprime auto asset-backed securities (ABS) have had more than a decade to study the wave of litigation that followed the collapse of subprime residential mortgage-backed securities, assess the theories that generated billions in recoveries, and refine strategies in the event they incurred losses of their own. Now, the collapse of Tricolor Auto, a used-car dealer and subprime auto lender whose “buy here, pay here” dealerships served Hispanic communities in Texas, Arizona, and California, has given the investors the opportunity to put those strategies to the test, and even go a step further.
Continue reading: Lighting the Match — Subprime Auto ABS Structure Comes Under Attack