A decade after bonds tied to U.S. home loans contributed to the financial crisis, British investment bank and financial services company Barclays is returning to the residential mortgage-backed securities market, Reuters reports. Many banks retreated from selling and trading portions ...
Read More »How Did Refis Impact the 2008 Financial Crisis?
While there is still debate about the various factors that contributed to the 2008 financial crisis and the collapse of the housing market, a new paper by the Urban Institute suggests that the poor performance of cash-out refinances, and refinances in ...
Read More »Barclays Settles RMBS Suit
The British bank Barclays has reached a settlement with U.S. authorities over financial crisis-era transactions involving toxic residential mortgage-backed securities (RMBS) sold between 2005 and 2007. Under the terms of the settlement, Barclay’s agreed to pay $2 billion in civil ...
Read More »Royal Bank of Scotland Settles for $500 Million
New York Attorney General Eric T. Schneiderman this week announced a $500 million settlement between the state and Royal Bank of Scotland. The settlement relates to claims that the bank misled investors over the quality of risky mortgage-backed securities leading ...
Read More »The Housing Market’s Long March to Recovery
Between December 2007 and June 2009, U.S. households lost over $16 trillion in net worth. That’s one of the stark figures that opens CoreLogic’s new special report entitled “Evaluating the Housing Market Since the Great Recession.” The report tracks the ...
Read More »Report Questions Effectiveness of Fed’s Crisis-Era Purchases
A report presented Friday by economists at the U.S. Monetary Policy Forum questioned the effectiveness of the Federal Reserve’s asset purchases during the 2008 financial crisis. The conference is held annually at the University of Chicago Booth School of Business, ...
Read More »Wallison: Treasury Department Wrong on Regulation Approach
Former White House Counsel and Senior Fellow in Financial Policy Studies at the American Enterprise Institute Peter J. Wallison put in an appearance Thursday on CNBC’s The Santelli Exchange, where he criticized the U.S. Treasury Department’s recent approach to regulation ...
Read More »Sen. Warren Turns Sights Toward Wall Street Again
The controversial Senator from Massachusetts and her colleagues are trying to get taxpayers off the hook for losses that occur from derivatives trading.
Read More »Will Weakening the FSOC Put the Country at Risk of Another Financial Crisis?
One of the major reasons why the financial crisis occurred back in 2008 is that the country was ill-equipped to address risks to the financial system; the regulatory structure could not keep up with the changing U.S. financial marketplace and the country lacked single entity that was accountable for protecting the stability of the entire financial system, Pinschmidt said.
Read More »Former Fed Chair Bernanke Says DOJ Should Hold Individuals Accountable for Crisis
Bernanke, who headed the U.S. central bank from 2006 to 2014, told the BBC that the Department of Justice should have attempted to hold individuals accountable for the crisis instead of companies because it was the decisions of individuals, and not the companies themselves, that brought on the crisis.
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