 |
 |
| Bradley Borden |
Wall Street Rules Applied to REMIC Classification
Investors in mortgage-backed securities, built on the shoulders of the tax-advantaged Real Estate Mortgage Investment Conduit (“REMIC”), may be facing extraordinary tax losses because of how bankers and lawyers structured these securities. This calamity is compounded by the fact that those professional advisors should have known that the REMICs they created were flawed from the start. If these losses are realized, Professors Borden and Reiss argue that those professionals will face suits for damages so large that they could put them out of business.
 |
|
| David Reiss |
An abstract of their forthcoming paper, was published by Thompson Reuters. In this article, Professors Borden and Reiss describe the history of the problem and argue that industry-wide reform is needed. “If the rule of law is respected, then Main Street can look forward to the equal protection of the law and returned prosperity without fear of bubbles inflating because powerful special interests can flout the law that applies to the rest of us.”