Federal authorities are investigating 14 companies as part of a wide-ranging subprime mortgage investigation focusing on loan securitization, accounting fraud and insider trading, according to The Wall Street Journal. The investigations are being conducted by the Federal Bureau of Investigation, which did not identify the companies targeted in the probe. The bureau said it would look into allegations of fraud by companies at various stages of the securitization process, from those that assembled the loans to the banks that ended up holding them. The bureau is also reviewing the books of financial services firms that have been forced into bankruptcy as a result of the mortgage crisis, to look for instances of insider trading and other wrongdoing, Neil Power, the chief of the FBI's economic crimes unit in Washington told the newspaper. Also, the bureau has 1,200 mortgage fraud cases under investigation and that they believe many more cases are in the offing, based on the number of so-called suspicious activity reports (SARs) filed by banks. The number of SARs documented by the FBI has rocketed from 35,000 in 2006, to 48,000 in 2007, and is projected to reach 60,000 in 2008, according to officials. The bureau is working with the SEC, which has opened more than three dozen investigations in the subprime mortgage business, including the role of investment banks.
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Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24