But even after learning about the defectiveness of the loans, Bear Stearns "went on to issue over 30 sub-prime and Alt-A securitisations that included AHM loans", says the attorney general.
And some cases are rubbing up against time limits, since under New York law, which governs most securitisations, breach-of-contract cases must be brought within six years of the alleged wrongdoing.
Our solution to this is going to be that banks, those leveraged and illiquid institutions, must now concentrate the risk of any securitisations they make inside those illiquid and leveraged institutions.