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Mortgage Backed Securities

Inflated Home Appraisals Key In Plaintiff's Lawsuit Against Banks

New York Times | GRETCHEN MORGENSON | Posted 05.25.2011 | Business

Recent filings by two Federal Home Loan Banks -- in San Francisco and Seattle -- offer an intriguing way to clear this high hurdle. Lawyers representi...

N.Y.Times Op-Ed Impugns Financial Reform by Imagining Fannie Is Just Like Wall Street

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

John Carney's New York Times op-ed piece is a tour de force, a paean to nonsensical thinking. He ignores the Fannie and Freddie of the real world. Instead, he goes after the Fannie and Freddie that exist only in his imagination.

Goldman Sachs Did Not Disclose Mortgage Moves To SEC For Months

McClatchy | Greg Gordon and Chris Adams | Posted 05.25.2011 | Business

WASHINGTON -- In December 2006, Goldman Sachs embarked on a frantic effort to shed billions of dollars in risky mortgage securities and purchase exoti...

Betting on a 2010 Kentucky Derby Winner

Don McNay | Posted 05.25.2011 | Sports
Don McNay

Each year, I write a column on Derby Day, and if you have followed my advice, you have lost a lot of money. The large fields at the Kentucky Derby throw logic out the window. Still, the betting system I tour is a good one.

Goldman Sachs Justice Department Investigation More Broad Than SEC's

Washington Post | Zachary A. Goldfarb and Jerry Markon | Posted 05.25.2011 | Business

The Justice Department's criminal investigation into Goldman Sachs goes beyond the financial transactions targeted by the Securities and Exchange Comm...

Hard Evidence of Goldman's Corrupt Intent and the Myth of the Sophisticated Investor

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

In certain markets, most notably, CDOs, the lack of common sense was institutionalized. It's evident in the deal book for Abacus 2007 AC-1, at the center of the S.E.C.'s case against Goldman.

Nothing Should Be Random About Rating Agency Assignments

Sue Allon | Posted 05.25.2011 | Politics
Sue Allon

Franken's measure was creative, but the diverse range of qualifications among the approved rating agencies is frightening to contemplate if a random assignment was the norm.

Michael Lewis: Goldman Sachs SEC Fraud Case Means 'Bond Market Will Never Be The Same'

bloomberg.com | Michael Lewis | Posted 05.25.2011 | Business

If you happen to be sitting on the Goldman Sachs bond-trading floor life must feel horribly unfair. You did nothing worse than live by the ethical as...

SEC Sues ICP Asset Management

Huffington Post | Nathaniel Cahners Hindman | Posted 05.25.2011 | Business

The Securities and Exchange Commission today filed civil fraud charges against ICP Asset Management and its founder, Thomas Priore, for fraudulently m...

6 Ways To Fix The Mortgage Mess NOW

Peter G. Miller | Posted 05.25.2011 | Politics
Peter G. Miller

For all the talk of reform on Wall Street, a quicker and easier way to assure that big banks don't fail and small borrowers don't get screwed is to si...

John Paulson Defends His Toxic CDOs by Insulting Everyone's Intelligence

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

There are countless ways to discredit Paulson's recent statements, just as there are countless ways to discredit his claim that he operated in "good faith."

Wall Street Journal Taking Moral Low Ground on SEC vs. Goldman

Diane Tucker | Posted 05.25.2011 | Media
Diane Tucker

The WSJ's editors, hellbent on proving they are visiting from Alpha Centauri, defend the actions of Goldman as "more a case of hindsight bias than financial villainy."

Let's Recall Toxic Mortgages

Peter G. Miller | Posted 05.25.2011 | Business
Peter G. Miller

The news is now filled with SEC accusations that Goldman Sachs defrauded investors who bought mortgage-backed securities, allegations Goldman Sachs st...

Five Lessons from the BP Oil Disaster

Andrew Winston | Posted 05.25.2011 | Green
Andrew Winston

It's high time to start sifting through the wreckage for some learning so we can avoid similar catastrophes. But why do we need to wait for each fresh disaster to relearn the lessons we already know?

Commercial Real Estate: Why Hasn't It Crashed?

money.cnn.com | Heidi N. Moore | Posted 05.25.2011 | Business

Oddly, however, there is one sector that has been outrunning the reaper since 2007, and it's the last place you'd expect to have survived so long: com...

Moody's Risk Committee Disappeared At Height Of Collapse

McClatchy | Kevin G. Hall | McClatchy Newspapers | Posted 05.25.2011 | Business

WASHINGTON -- As the bottom fell out of the housing market and complex mortgage-backed securities began tanking in 2007, a strange thing happened at M...

Alan Greenspan's Financial History for Lobotomy Victims

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

Rejecting the capitalist values of choice and personal accountability, Greenspan filters history through an intellectual construct where no one -- most notably Alan Greenspan -- ever takes the blame.

Financial Reform: It's the Derivatives, Stupid!

Leo W. Gerard | Posted 05.25.2011 | Business
Leo W. Gerard

Wall Streeters who get millions in bonuses to know better are still trading in derivatives. Nothing is preventing another financial collapse, when Wall Street will come crying to Washington for a new $700 billion

Freddie Mac and Fannie Mae Must Marry, Shrink and Change

Jerry Chautin | Posted 05.25.2011 | Politics
Jerry Chautin

But the time is right to merge Fannie Mae and Freddie Mac and form three separate companies. That is the best way to lead the GSEs out of federal conservatorship and repay the taxpayers.

NPR's Planet Money Buys A Toxic Asset Just To Watch It Die

npr.org | Nelson Hsu, Heather Murphy, David Kestenbaum, Chana Joffe-Walt | Posted 05.25.2011 | Business

Remember those complicated bonds full of home mortgages? The ones that almost brought down the economy? A team of NPR reporters used $1,000 of their o...

Fed Chooses to Exit Through Eye of Needle

Michael Pento | Posted 05.25.2011 | Business
Michael Pento

The Fed's balance sheet has increased to $2.25 trillion from $925 billion at the start of 2008 and excess reserves in the banking system now total more than $1 trillion.

U.S. Housing Market: Fed Counting On Foreign Governments To Fund The Housing Market

washingtonpost.com | Howard Schneider | Posted 05.25.2011 | Business

Senior officials in the Obama administration and at the Fed say they are counting in part on foreigners to keep the housing market funded....

Janet Tavakoli: Wall Street Mortgage-Derivatives Trading Was 'A Massive Ponzi Scheme'

Posted 05.25.2011 | Business

In a "60 Minutes" segment last night, Morley Safer interviewed a number of "pigeons" -- what con artists call their victims -- of prominent scams. Amo...

Mortgage Rate Forecasts: Rates Likely To Rise Once Fed Stops Buying Mortgage-Backed Securities

calculatedriskblog.com | Posted 05.25.2011 | Business

From Carolyn Said at the San Francisco Chronicle: Mortgage rates poised to jump as Fed cuts funds....

Obama and the "Savvy" Bankers

Dean Baker | Posted 05.25.2011 | Business
Dean Baker

Last week, President Obama described Goldman Sachs CEO Lloyd Blankfein as a savvy businessman. It's worth examining more closely some of the ways in which Blankfein was "savvy."