“The US mortgage crisis has entered a new stage. US banks are still flailing in the toxic sludge of bad assets that heralded the financial crisis. But now they are having to deal with a barrage of litigation that will determine how big their losses will be. The optimists say settlements are being reached, banks are adequately reserved and many of the claims have dubious merit. Skeptics say many more lawsuits are on the way.”

Read the full story at The Financial Times