Press Releases

Capital Markets Crisis Group Expansion

Stroock Expands Capital Markets Crisis Group

New York, NY, April 3, 2008 -- Stroock & Stroock & Lavan LLP, a leading national law firm with offices in New York, Los Angeles and Miami, today announced the expansion of its Capital Markets Crisis Group to address the wider range of challenges arising from the expanding credit crisis in the housing and capital markets.

"As the capital markets crisis continues to evolve and affect more market participants, Stroock has moved to provide our clients with the advice they need to address these challenges and opportunities," explained Stroock Capital Markets Crisis Group co-team leader and Structured Finance practice group partner Rick Fried.  "The credit crisis may have started with  the subprime mortgage market,  but now affects almost every sector of the housing and capital markets. Accordingly, Stroock is expanding the scope of the services this dedicated group offers.”

As recognized market leaders in class action and financial services litigation, structured finance, insurance, real estate, mutual and hedge funds and financial restructuring, Stroock provides unique, integrated legal services to its clients.

Areas the group is focusing on include:

  • auction rate securities; 
  • interpretive issues related to restructurings of derivatives, CDOs, CLOs and other complex financial structures; 
  • restructuring of insurance companies, mutual funds and banks;
  • negotiation/preparation of derivatives documentation, and analyzing complex derivative instruments;
  • implementing tax effective methods for allowing foreign investors to acquire distressed debt;
  • alternative methods of financing required insurance company reserves;
  • acquisition, sale, restructuring and enforcement of commercial real estate debt.

The auction rate securities market functioned effectively for more than 20 years and has grown to more than $330 billion.  However, in the wake of the subprime mortgage crisis, most auctions began to fail in mid-February.  Stroock is working with issuers and underwriters of, and investors in, auction rate securities to explore financing alternatives.

Stroock is advising clients regarding restructuring defaulted and other distressed CDOs and CLOs, as well as advising asset managers on the opportunities arising from the current capital markets.  This advice has ranged from fund formation and capital raising to advising on the features of particular investments and related transaction documents.

Stroock is currently advising a leading monoline insurer in various initiatives arising out of recent capital markets developments.  Stroock's representation in this area draws upon the expertise of its Corporate, Insurance and Financial Structuring lawyers in advising insurance companies on transactional, governance and regulatory matters associated with restructurings.

Key contacts for the group include Rick Fried; former NY Attorney General Robert Abrams; Lois Weinroth; Stuart Coleman; Mark Rae; Jeff Stern; Curt Mechling; Bill Campbell;  Mike Basile in Miami and Julia Strickland in Los Angeles.

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Stroock & Stroock & Lavan LLP is a law firm providing transactional and litigation guidance to leading multinational corporations, investment banks and venture capital firms in the U.S. and abroad.  Stroock’s emphasis on client service and innovation has made it one of the nation’s leading law firms for 130 years.  Stroock’s practice areas include: capital markets/securities, commercial finance, mergers & acquisitions and joint ventures, private equity, private funds, derivatives and commodities, employment law and benefits, energy and project finance, entertainment, financial restructuring, financial services litigation, insurance, intellectual property, investment management, litigation, personal client services, real estate, structured finance and tax. For more information, please visit Stroock’s website at www.stroock.com.