But a new analysis of the mortgage crisis, which cost millions of families their homes and brought down storied financial institutions such as Lehman Brothers and Washington Mutual, suggests prime loans, not subprime, were the major driver and “the crisis was not solely, or even primarily, a subprime sector event.” This select print feature will appear in the August 2015 issue of DS News.
Read More »S&P and Experian Data Shows Default Rates Hit New Lows in May
Recently released data from S&P Dow Jones Indices and Experian shows that default rates across the country and across the financial spectrum aren’t just on a steady decline, they hit new lows in May. According to the S&P/Experian Consumer Credit Default Indices, four of the five cities the companies studied through May reported declines in default rates for the second straight month.
Read More »JPMorgan Chase & MBS Investors Reach $388 Million Settlement in Lawsuit
JPMorgan Chase & Co agreed to pay $388 million to resolve a lawsuit by investors who claimed that the U.S. bank provided misleading information about the safety of $10 billion worth of residential mortgage-backed securities it sold before the financial crisis, according to multiple media reports.
Read More »Fed Rules Eight Banks to be Held to Minimum Capital Holdings or Surcharges
The nation’s top eight banks will be held to minimum capital holdings or face stiff surcharges, according to a decision made by the Federal Reserve on Monday. The ruling establishes minimum holdings among what the Fed dubs “global systemically important banks,” or GSIBs, the firms with the most risk-based endeavors.
Read More »Morgan Stanley’s Q2 Net Revenues Reach $9.7 Billion
Morgan Stanley's net revenues reached $9.7 billion for the second quarter ending June 30, 2015, compared with $9.9 billion in the first quarter of 2015 and $8.6 billion a year ago, according to the company’s second quarter earnings statement released Monday. Morgan Stanley noted that their revenues for the second quarter reflect robust performance in equity sales and trading, strong results in investment banking, and continued progress in fixed income and commodities sales and trading.
Read More »Congressmen Agree White House Has Not Made GSE Reform a Priority
Appearing as panelists in a discussion at the Bipartisan Policy Center this week titled "Housing Finance Reform: A Status Report," U.S. Congressmen Randy Neugebauer (R-Texas) and John Delaney (D-Maryland) both agreed a major reason why such reform has not happened is because the White House has not made it a top priority.
Read More »Analysts Estimate Monetary and Paperwork Costs Imposed by Dodd-Frank
The Home Mortgage Disclosure Rule is one of the rules that is still pending; AAF estimates it will impose another $2.1 billion in final rule costs to go with 90,000 paperwork hours. The rule was originally scheduled to go into effect on August 1, but the CFPB announced this date would be pushed back due to an "administrative error"; the new proposed effective date is October 3.
Read More »Fannie Mae Reaches Milestone With Latest Credit Risk Sharing Transaction
Fannie Mae took two major steps this week in achieving its goal of increasing the role of private capital in the mortgage market through credit risk transfers in order to reduce taxpayer risk, as set forth by its conservator, the Federal Housing Finance Agency (FHFA).
Read More »Higher Net Interest Rate Income Drives Revenue Hike for SunTrust; Comerica Earnings Down
The Q2 2015 net income for SunTrust was $0.89 per average common diluted share compared to $0.78 per share earned in the last quarter, and includes a $0.03 favorable impact by a per share from a discreet income tax benefit.
Read More »Fed Likely to Raise Rates By Year’s End If ‘Economy Evolves’ As Expected
In both hearings, Yellen addressed the subject of the much-anticipated federal funds range increase; Thursday before the Senate Banking Committee, she reiterated that more economic improvement, particularly in the labor market, is needed along with confidence that the objective of 2 percent inflation can be met over the medium term. She said the Federal Open Market Committee (FOMC) would determine on a meeting-by-meeting basis if progress toward that goal is sufficient enough to raise the rates.
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