Tag:
subprime
Latest Headlines
Latest Headlines
Charges against Credit Suisse employees
Many have lamented the lack of individual charges in SEC prosecutions against Wall Street firms for fraud related to CDOs built on residential mortgages.
None of the top executives of a big-name firm were named in indictments. To some, it seems like the SEC goes after token individuals only. T
Mortgage industry clings to old ways
The consumer mortgage business has lost a lot of credibility since the start of the foreclosure fiasco. Few days go by without some reminder that industry's perceived lust for profits at any costs left a lot of victims in its wake.
Whether this is fair or not, the industry has found itself on
Citi to grow or sell its consumer sub-prime unit?
When it comes to sub-prime lending, some banks have thrown in the towel. HSBC has beat a hasty retreat. Wells Fargo has announced it will shutter all of its Wells Fargo Financial, which ran 638 storefronts. But Citi CEO Vikram Pandit ( Vikram Pandit news) says his
Savings and loan regulator will be shuttered
Good bye thrift industry. As part of the historic financial reform bill ( financial reform news), the Office of Thrift Supervision will be shuttered, an apt symbol of the demise of a once proud industry. The ranks of the nation's "thrifts" have dwindled. The biggest names--Washington Mutual, In
Any risk from self-evaluations on Wall Street?
The recent hearings over Goldman Sachs' ( NYSE: GS ) CDO ( CDO news ) practices were notable for the fact that the Senators used employee self-evaluations against them. Bloomberg notes that some on Wall Street may be wondering what kind of risk such evaluations impose in the future. While
Client sues JPMorgan over soured investments
A big client has blamed JPMorgan of mismanaging an investment account that held $1 billion in assets owned by his company, Access Industries. Specifically, it charges that a JPMorgan banker advised the company to invest in subprime-related securities that resulted in a near $100 million loss.
Are Fannie, Freddie execs restrained from frank discussion?
As it turns out, there were several internal risk officers who warned the top executives that they were becoming dangerously overexposed to risky subprime and Alt-A loans. This was the conclusion of an extraordinary hearing that featured former CEOs of Fannie Mae and Freddie Mac, who did not tell
Morgan Joseph bets on credit markets
Exotic credit-linked securities have been the downfall of too many brand name investment banks as of late. But that spells opportunity for one boutique that carries the name Morgan Joseph--which was founded by Frederick Joseph, who some of you will recall was the former CEO of Drexel Burnham. For
Credit rating agencies again lagging events?
Credit rating agencies have been beaten up pretty thoroughly in the credit crunch. Many would say they have been discredited. If only they hadn't rated all those subprime-backed CDOs AAA! In the wake of the Lehman Brothers bankruptcy, Advisor Perspectives notes that on Friday, just before the
Is the worst now over? John Paulson may think so
The idea that we need a big failure to get past a financial crisis has long been out there. That's one reason a lot of people assumed that the Bear Stearns implosion signaled the worst was over. Of course they were wrong. Still, now you have to wonder whether the demise of Fannie and Freddie signa
