This document summarizes a presentation on the liability of professionals in the financial crisis. The presentation was given by Stuart Grant of Grant & Eisenhofer P.A. and Michael Young of Willkie Farr & Gallagher LLP and addressed trends in securities litigation law and financial reporting that have impacted professional liability. It also summarized areas of litigation relating to accountants, investment banks, rating agencies, and lawyers in the wake of the financial crisis.

1. Liability of
Professionals
in the Financial Crisis
February 24, 2009

2. Agenda
Introduction
Presentation
Stuart Grant, Grant & Eisenhofer P.A.
Michael Young, Willkie Farr & Gallagher LLP
Questions and Answers ― (anonymous)
Slides ― now available on front page of Securities Docket
> www.securitiesdocket.com
Wrap-up

3. Webcast Series
Series of webcasts ― every other week
Next: March 11, 2009:
« The Subprime Boomerang: After the
Writedowns Comes the Litigation »
Victoria Rendon, Arnold & Porter LLP
Jeff Nielsen, Navigant Consulting, Inc.
www.securitiesdocket.com/webcasts

4. Panel
Stuart Grant
Bruce Carton
Michael Young

5. Professional Liability
in the
Financial Crisis
Stuart M. Grant Michael R. Young
Grant & Eisenhofer, P.A. Willkie Farr & Gallagher LLP

6. Three Phases of Securities Litigation
Phase I – 1970s to 1995
Phase II – 1995 to 2006
Phase III – Now
Trends in the law
Trends in financial reporting

7. Trends in the Law
Central Bank
Dura
Twombly
Tellabs
Stoneridge

8. Trends in Financial Reporting
From preparers to users
From U.S.-centric to international
convergence
From rules to principles
From cost to fair value
From periodic to real-time

9. Countrywide
“[T]he [complaint’s] allegations present the
extraordinary case where a company’s essential
operations were so at odds with the company’s
public statements that many statements that
would not be actionable in the vast majority of
cases are rendered cognizable to the securities
laws.”

10. Accountants
Subprime Crisis But challenges . . .
Center for Audit Quality Internationalization
Section 404 International liability
Restatements In pari delicto
10A Investigations Sustainability & Treasury
Committee Recommendations
Madoff

11. Investment Banks
Central Bank, Dura, Stoneridge
Twombly & Tellabs
10(b)
Sections 11 & 12(a)(2)
Rombach
Risk Management

12. Rating Agencies
SEC Report
Litigation
First Amendment Protection

13. Lawyers
SEC Enforcement
DOJ & Conrad Black Trial
Sarbanes-Oxley Attorney Conduct Rules
Bankruptcy Trustees
Refco
Liability Like Auditors?

14. Questions?

15. Thank You
Thank you for attending this webcast.
Next webcast:
March 11, 2009, 2:00 pm EST
“The Subprime Boomerang: After the Writedowns
Comes the Litigation”