Spinning off derivatives could cost banks billions

A Democratic official familiar with Senate banking negotiations says a provision that would force banks to spin off their derivatives operations will be incorporated into sweeping regulatory legislation despite Obama administration misgivings. The provision would cost the nation’s largest banks billions of dollars in business. In an agreement struck Sunday, Banking Committee Chairman Christopher Dodd …

Credit-ratings agencies became financial whores

Confirming what most analysts knew, both before and after 2007, a Senate panel investigating the causes of the nation’s financial crisis on Thursday unveiled evidence that credit-ratings agencies knowingly gave inflated ratings to complex deals backed by shaky U.S. mortgages in exchange for lucrative fees. The Senate Permanent Subcommittee on Investigations will hold a detailed …

Changes at the top of Saxon Mortgage parent company Morgan Stanley

There are changes at Morgan Stanely, parent company of Saxon Mortgage. Morgan Stanley Chief Executive John Mack is stepping down and will be replaced by retail brokerage head James Gorman, signaling the storied bank is embracing stable businesses after losing big on risky ones. Personally I think the move is made before Saxon Mortgage is …