RBS and HSBC package bad loans, sued in US

Documents released by the US Federal Housing Finance Agency (FHFA) claim that Royal Bank of Scotland (RBS) and HSBC retained the services of Clayton Holdings, a risk analysis specialist, to scrutinize loans before they were placed in bundles of mortgage-backed securities. According to the filings, reports from Clayton show that 18 percent of the mortgage …

Goldman Sachs sued again over MBS

Bond insurer CIFG Assurance has become the latest aggrieved party to sue Goldman Sachs for misrepresenting a bunch of MBS-related securities that blew up. The suit, filed on Tuesday, relates to securities built from a portfolio of 6,204 loans made by M&T, which was also sued. Goldman subsequently packaged these loans into bonds that the …

S&P Downgrade – where was S&P 4 years ago?

By TOM RAUM Associated Press The S&P downgrade was more of a statement on the toxic political landscape in Washington than a comment on the nation’s ability to pay its bills. But S&P has its own checkered history. Just a few years ago, the company gave its top triple-A rating to some of the mortgage-backed …

Greek debt and U.S. subprime crisis similar

The parallel between the Greek debt crisis and the subprime crisis is striking. Trashy debt is alchemised to gold through manipulations driven by a political agenda. In the case of subprime debt, this took the form of collateralized debt obligations consisting of government-supported mortgage-backed securities. In the case of Greek bonds, it was European Monetary …