Insurance companies fear CDO litigation

News

London - Insurance companies are bracing themselves for the impending wave of litigation relating to losses due to poor-performing securities such as collateralised debt obligations (CDOs). Cases in the US filed for securities fraud or negligence have skyrocketed during the second quarter of 2008 in particular, and UK firms are bracing themselves for the wave to hit the other side of the Atlantic. "I expect to see cases in the UK by the end of this year," says Gavin Benson, director at Protiv