CDOs/CLOs

The Federal Reserve Bank of New York may require seller/servicers of nonprime mortgages and CDO sponsors to repurchase certain loans out of mortgage trusts that are controlled by the agency.

BNY Mellon Corporate Trust has named Richard Stanley and Debra Baker to oversee its structured finance business lines, the firm announced today.

Jefferies appointed Erez Biala as a managing director and global co-head of CLO and CDO trading.

Fairholme Capital Management’s motto is “Ignore the Crowd,” and the hedge fund is sticking close to that maxim with its roughly $200 million investment in MBIA.

The Securities and Exchange Commission (SEC) Thursday charged Citigroup with misleading investors about its exposure to subprime mortgage-related securities.

The Securities and Exchange Comission (SEC) said today that it will open up a public comment period on the new rules presented under the Dodd-Frank Reform Bill. This will before the official comment periods have started.

It will take five years to turn the new federal financial reform law into rules and regulation, an industry expert from the Securities Industry and Financial Markets Association (SIFMA) said last week.

Five of Spain's smaller regional lenders, known as cajas, were among the seven banks to fail the European Union stress test.

Onex Credit Partners, a unit of private equity firm Onex Corp, has hired Jack Yang, a loan market veteran who helped expand Highland Capital Management’s credit strategies business, as a managing partner. This hire indicates that Onex is looking to expand its leveraged finance business.

Only seven banks failed the European stress test results for financial institutions. The question remains whether the test has done enough to ensure the strength of European financial institutions.