JPMorgan Chase disclosed on Wednesday that it faces a criminal and civil probe over whether the bank sold risky mortgage-backed securities to investors before the financial crisis, reports New York Times DealBook.
With everyone hoping for positive GDP growth in Q3 and Goldman Sachs analyst Jan Hatzius now predicting growth at an annual rate of three percent in the second half of the year, the banks, investors, and politicians are all hoping that that nasty problem of foreclosures would just go away already. Unfortunately for everyone – especially the people losing their houses – there’s no reason for it to go away.
The global Central Banks are relying increasing on verbal intervention. The reasoning here is very simple: actual monetary policy is proving to have marginal effects. In the US, every new wave of QE has had less and less impact on the stocks.
The takeover of DBRS Ltd. by global money managers will undoubtedly assist the Canadian credit ratings agency’s North American and European ambitions.
But advocates for investors burned by a made-in-Canada debacle in the early days of the financial crisis less than a decade ago hope the takeover, reportedly for more than $500-million, will strengthen the core business of the ratings agency.
The nation's biggest banks could face billions of dollars in claims from investors in mortgage-backed securities. Pension funds, mutual funds and others want the banks to take back bad loans. But investors still face a number of legal obstacles.» E-Mail This » Add to Del.icio.us