The Big Short Explained: Legal Reasoning and Repercussions

Did you enjoy the book or film The Big Short but have trouble keeping up with all of the acronyms and financial and legal lingo? Were you captivated by the movie’s suspense but not always entirely certain what was going on? Were you wondering where all the lawyers were?

While, sadly, neither Anthony Bourdain nor Selena Gomez is available, attorney Gary J. Ross of Jackson Ross PLLC is on hand to break down the layers of mortgage-backed securities, collateralized debt obligations, tranches and synthetic derivatives, and help participants better understand these complex financial instruments and their role in bringing about the financial crisis of 2007-08. Gary also analyzes the laws governing securitization and structured finance transactions, as well as the role of lawyers in facilitating these deals. Gary concludes with a discussion of the laws passed in the wake of the financial crisis that attempt to prevent its recurrence.

Learning Objectives:

I.     Recognize acronyms for various financial instruments

II.    Grasp the basics of how these instruments work

III.   Understand the role of these instruments in the collapse of the housing market

IV.   Identify the laws governing securitization and the role of lawyers

V.    Comprehend laws that were created in the aftermath of the financial crisis and why they were created