Case for Briefing Dewsnup v. Timm 116 L.Ed. 2d 903, 112 S. Ct. 773 Article

Case for Briefing Dewsnup v. Timm 116 L.Ed. 2d 903, 112 S. Ct. 773 (1992) - Article Example In 1986 and 1987, plaintiff-respondents filed complaints in the Federal District Court for the District of Oregon, alleging that they were induced to invest in the partnerships by misrepresentations in offering memoranda prepared by petitioner and others in violations of inter alia, 10 (b) of the Securities Exchange Act of 1934 and Rule 10b-5 and further assert that they become aware of the alleged misrepresentations only in 1985. The court granted summary judgment for the defendants on the ground that the complaints were not timely filed, ruling that the claims were governed by Oregon's 2-year limitations period for fraud claims, the most analogous forum-state statute; that plaintiff-respondents had been on notice of the possibility of fraud as early as 1982; and that there were no grounds sufficient to toll the statute of limitations. The Court of Appeals also selected Oregon's limitations period, but reversed, finding that there were unresolved factual is- sues as to when plaintiff-respondents should have discovered the alleged fraud. No. The judgment is reversed. The court through Justice Blackmun held that litigation pursuant to 10(b) and Rule 10b-5 must be commenced within one year after the discovery of the facts constituting the violation and within three years after such violation, as provided in the 1934 Act and the Securities Act of 1933. It is the usual rule that when Congress has failed to pro- vide a statute of limitations for a

Financial Institutions & Markets Essay Example | Topics and Well Written Essays - 2000 words

Financial Institutions & Markets - Essay Example What happened was, banks are known to financed their mortgage lending using customer deposits which of course is a limit to the amount of mortgage lending they can do. But in recent years, banks in a bit to fund additional borrowing, moved to a new model where they sell mortgages on the bond markets which was widely seen as an easier means of funds. But this form of borrowing led to bank abusing that incentive to carefully check mortgages they issued.1 Banks saw the business to be extremely profitable since they could earn a fee for each mortgage they sold and went ahead to urge mortgage brokers to sell more and more of these mortgages. The market soon extended especially as the private sector dramatically expanded its role in the mortgage bond market that was previously dominated by government-sponsored agencies like Freddie Mac. Prices became so high to an extend that if the boom had to continue, many US populations would have been evicted from their homes since the US interest rates too were interestingly high. The fall in housing prices affected the wider economies. The Standard & Poor’s/Case-Schiller index in March 2008 showed that housing prices in the US had fell by 11,4% in January and 8,2% in February 2008.2 In a bit to cushion the US economy from the worst effects of the credit crunch and housing slump due to the sub prime loans, the Fed in January 2008 had to cut down interest rates from 3.5% to 3% for the fifth time since September 18 2007 and today at 2.25%. This was in a bit to encourage consumption among Americans. The economic growth rate had slowed to an annual rate of 0.6% between October and December, half the rate forecast and compared with a brisk 4.9% growth rate in the previous three months due to the credit slump and may further be cut to 1,5%.3 To ward off the pressure of slower economic growth, the Bush Administration and Congress moved ahead to agree on a temporary