Subprime and other residential mortgage bonds that helped trigger the financial crisis are back in vogue with long-term investors, in the latest sign that American credit markets are healing after the worst downturn in a generation. Get the full story »
Inside these posts: subprime mortgages
Visit our Filed page for categories. To browse by specific topic, see our Inside page. For a list of companies covered on this site, visit our Companies page.
Illinois sues Countrywide over subprime loans
The state of Illinois sued former mortgage giant Countrywide Financial Corp. on Tuesday for allegedly using discriminatory lending practices for minority borrowers.
The lawsuit, filed in Cook County Circuit Court by Illinois Attorney General Lisa Madigan, said an investigation revealed that African-American and Latino borrowers were much more likely to be given risky subprime loans by the lender than similarly situated whites from 2005 to 2007.
Evanston-based Magnetar denies CDO accusations
From Bloomberg | Magnetar Capital, the Evanston-based $7 billion hedge-fund firm that made money in 2007 from wagers on subprime-housing debt, told investors it didn’t help banks create mortgage-linked investments “built to fail.” In a letter, the firm claimed that “There was no embedded view regarding the direction of housing prices, the rate of mortgage defaults or the subprime-mortgage market generally.”
Get the full story: businessweek.com.
