The Federal Reserve Bank of New York has turned down an offer by American International Group to repurchase dodgy mortgage bonds that the Fed had taken off the insurance company’s hands during the financial crisis. Get the full story »
Inside these posts: Mortgage bonds
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BofA in mortgage settlement talks
Bank of America Corp. is in talks with a group of six investors to settle charges that it mishandled $16.5 billion in mortgages packaged into bonds, the Wall Street Journal reported Wednesday.
The investor group, which includes Freddie Mac, PIMCO, BlackRock Inc. and Allianz SE, told the bank in October that it had 60 days to respond to allegations that it did not properly service 115 bond deals comprising mortgages. The deadline for the bank’s response was Thursday, the Journal said. Get the full story »
Mortgage investors sue Citi over underwriting
Several Citigroup Inc. mortgage bond investors, including Charles Schwab Corp. and hedge fund Cambridge Place Investment Management, have sued the bank over its home loan underwriting processes, according to a regulatory filing on Friday. Get the full story »
Mortgage bond insurer on bankruptcy’s brink
Ambac Financial Group Inc., which was the second-largest U.S. bond insurer before suffering huge losses on risky mortgages, said it may file for bankruptcy protection as soon as this year after skipping a bond interest payment.
Ambac shares slid as much as 59.8 percent Monday. Get the full story »
New downgrades, warnings crush bond insurers
The bond insurance business, which fell to its knees during the 2008 financial crisis under the weight of soaring defaults, may have finally heard its death knell Monday. Get the full story »
Fed turns to government bonds to boost economy
The Federal Reserve said Tuesday that it would begin funneling proceeds from its maturing mortgage bonds into longer-term government debt in an effort to support a sputtering economic recovery.
The Fed, which left benchmark overnight interest rates steady in a zero to 0.25 percent range, also renewed its pledge to keep them low for an extended period, as widely expected. Get the full story »
