Posts belonging to Category Commercial Mortgage Backed Securities

Credit Union Administration Sues Wall Street Firms to Recover Investment Losses


The National Credit Union Administration (“NCUA”) has filed suit against J.P. Morgan Chase and Royal Bank of Scotland seeking to recover more than $800 million in failed credit unions’ losses in residential mortgage-backed securities, and expects to file additional lawsuits against five to ten other Wall Street firms to recover billions of dollars in additional […]

Institutional Investors Are Filing Big Claims Against Financial Services Firms


Defense-minded institutions that have long remained on the sidelines when defrauded have finally woken up and are jumping on the plaintiff-recovery bandwagon as they seek to protect themselves against a variety of wrongdoing, according to Vanessa O’Connell’s Wall Street Journal article entitled “Company Lawyers Sniff Out Revenue.” These actions include waves of claims against Wall […]

Merrill Lynch and Credit Suisse Fined for Misrepresenting Important Facts about Mortgage-Backed Securities to Investors


The Financial Industry Regulatory Authority (FINRA) has fined Credit Suisse Securities (USA) LLC $4.5 million, and Merrill Lynch $3 million. The fines arise out of FINRA’s findings that the firms misrepresented historical delinquency rates in connection with the residential subprime mortgage securitizations (RMBS) that the firms underwrote and sold. Upon learning of the errors, Merrill […]

Mortgage-Backed Securities Problems Continue to Haunt Bank of America


Bank of America expects to face legal losses this year for anywhere from $145 million to $1.5 billion. And that is just what it can reasonably estimate. Most of these losses stem from the underwriting of mortgage-backed securities.

Wall Street Banks Lobby to Undercut Financial Reform


Gretchen Morgenson reports that the battle for the safety and soundness of U.S. financial markets is far from won, despite the Dodd-Frank financial reform act, as Wall Street lobbies Congress to relax certain key provisions of that act in an attempt to restart the “assembly line for selling toxic waste to investors.” See “Note to […]

Credit Unions Sue Wall Street Banks to Recover Mortgage-Backed Securities’ Losses


Four of the nation’s largest Wall Street banks are facing threatened lawsuits by the National Credit Union Association (“NCUA”) and, possibly, regulators if they do not refund approximately $50 billion that five “wholesale” or “corporate” credit unions used to purchase bonds backed by risky subprime mortgage loans, according to a Wall Street Journal article by […]

Questions Raised about How Major Financial Institutions are Treating Troubled Loans


According to a recent article in the Wall Street Journal, the SEC is looking into United States banks that have restructured troubled loans in order to make them appear healthier than they actually are. The SEC is looking into practices such as “extend and pretend” or “amend and pretend” in which a bank gives a […]

Did Big Banks Manipulate LIBOR Rates?


The Securities and Exchange Commission and the Justice Department are investigating whether Bank of America Corp., Citigroup Inc., UBS AG, and other banks submitted inaccurate data in an attempt to manipulate the London Interbank Offered Rate (LIBOR), according to a Wall Street Journal article by David Enrich and Jean Eaglesham called “U.S. LIBOR Probe Includes […]

Wall Street is Back Up to its Old Tricks – Sales of Risky Asset Backed Securities Return


The asset-backed securities market ? “the Wall Street credit machine that helped set off the financial crisis” ? has come back to life, according to a New York Times article called “Wall Street Securitization Machine Back Into Gear?” Securities backed by commercial real estate, which apparently did not reach expected lows, are leading the pack. […]

Sophisticated Institutional Investors “Jump on the Bandwagon” – Sue to Recoup Losses in Mortgage-Backed Securities and CDOs


Sophisticated institutional investors are bringing claims in waves against Wall Street financial institutions for fraud in the sale of mortgage backed securities, CDOs and related exotic investments. Most recently, Charles Schwab Corp. is among a group of financial institutions suing Goldman Sachs for making material misrepresentations and omissions in connection with the offer and sale […]