At the onset of the last housing crisis, it was widely believed that the lenders who extended
subprime mortgages and the homeowners who had taken out those loans were responsible for the housing boom, bust, and ensuing economic crisis.
Moody's said that servicers could move business models and start originating
subprime mortgages as growth diminishes, due to reasons that include tougher regulations.
MORE than half of
subprime mortgages in Ireland are in arrears by more than 90 days, official figures have revealed.
The deals included $2 billion of debt sold to the investors now taking Goldman to court who claim that they were sold risky debt linked to
subprime mortgages, and that Goldman had been betting against those mortgages.
The unit of RBS, known as RBS Securities, which engaged in the selling of
subprime mortgages agreed to settle with American regulators in the Securities and Exchange Commission (SEC).
It says S&P delayed updating its ratings models, rushed through the ratings process and was fully aware that the subprime market was flailing even as it gave high marks to investments made of
subprime mortgages. In 2007, one analyst forwarded a video of himself singing and dancing to a tune about the deterioration of the subprime market, with colleagues laughing.
Several of the largest ones, including Wachovia and Merrill Lynch, have paid millions to investors and government agencies to settle charges tied to
subprime mortgages. But some analysts say these settlements do not serve as enough of a deterrent to banks that contributed to the crisis.
The correlation between the concentration of subprime borrowers and voting pat terns was greater in 2004, when subprime credit was beginning to flow, than in 1996, when
subprime mortgages were still a small share of the overall mortgage market.
SEC's ruling regarding Citigroup is part of a wider regulatory investigation into
subprime mortgages.
The bills, which were signed into law last December, are also designed to help homeowners who did not take out
subprime mortgages but, nonetheless, face foreclosure.
The documents include offering circulars for 40 of Goldman's estimated 148 deals in the Caymans over a seven-year period, including a dozen of its more exotic transactions tied to mortgages and consumer loans that it marketed in 2006 and 2007, at the crest of the booming market for
subprime mortgages to marginally qualified borrowers;
2006 through July 2007 Credit Suisse fraudulently invested over $545 million of Roche's cash in CDOs and other ARS collateralized by
subprime mortgages, credit-linked notes and other risky collateral, rather than in federally guaranteed student loan securities as represented," said the Roche complaint filed in a New York court.
