American Business Financial Services News

The Wall Street Journal has a good scoop on a story showing the connection of Wall Street to the shadier parts of the subprime industry.

More than $150 million has been collected in settlements with various entities connected to now-defunct payday lender American Business Financial Services , which filed for bankruptcy in 2004 and went out of business in 2005.

An Arizona-based debt settlement company accused in a lawsuit of preying on people who can't pay their bills has been ordered to pay nearly $200,000 in penalties for defrauding customers in New York state.

JPMorgan Chase & Co. and two other investment banks have agreed to pay $100 million to settle a lawsuit over their contribution to investor losses in the collapse of American Business Financial Services Inc., the bankruptcy trustee's lawyer said Friday.

The bankruptcy trustee for American Business Financial Services Inc. has reached a $100 million settlement with investment banks that helped the Philadelphia mortgage lender package loans into securities.

What a difference a day makes. On Tuesday, it looked as though the trustee for American Business Financial Services was facing the potential of an added defendant at his trial against several large financial institutions when those institutions filed a motion to join Blank Rome to the defendant roster.

Philadelphia Judge Mark I. Bernstein's opinion was short, but it said plenty. The commerce program judge was clearly irked by a request from several large financial institutions to dispense with a jury trial in the case against them by the trustee of the bankrupt American Business Financial Services.

Blank Rome LLP has agreed to pay $20 million, without admitting any wrongdoing, to settle a complaint by bankruptcy trustees for the estate of failed Philadelphia subprime home lender American Business Financial Services Inc.

"Investors need, or should want, transparency in their money manager's investment strategy.

Blank Rome has entered into a $20 million agreement with the trustee of a former client that is now in bankruptcy to settle a complaint that alleged breach of fiduciary duty, professional malpractice and breach of contract claims against the firm.

Blank Rome said Friday that it has agreed to pay $20 million to settle a malpractice case brought against the law firm by the bankruptcy trustee for defunct payday lender American Business Financial Services .