Securitization

Manager Activity: AutosFull Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market

Lewis Ranieri, co-inventor of the mortgage-backed security, has stepped down as interim chief executive of the struggling Franklin Bank Corp. of Texas, but he will remain as chairman as the depository searches for new capital.

HSBC France, Paris, has launched an 8 billion euro ($11.6 billion) covered-bond program under French law, with the capability of issuing private placements in German law registered format.

The Securities Industry and Financial Markets Association (SIFMA) cautioned against proposals to remove references to credit ratings in regulations that the Securities and Exchange Commission (SEC) issued with the intention of avoiding overreliance on credit ratings and promoting independent analysis.

Over the next 12 to 18 months, Europe, Middle East and Africa (EMEA) region can expect stable and negative performance of its major structured finance asset classes, Moody’s Investor Service said in a report published today.

GMAC Financial Services and its subsidiary Residential Capital (ResCap) will undertake added initiatives to further optimize the mortgage business such as closing some of its businesses.

Piper Jaffray & Co. has expanded its aircraft finance team. The new additions to the team include Doug Runte, Scott Sodokoff, Dan Reese and John Covello, who will add substantial depth, breadth and an increased level of client service to the firm’s foundation of structured analytics expertise.

The D. E. Shaw Group recently tapped Richard McKinney as a managing director to oversee the firm’s newly formed asset-backed securities unit.

Andrews Kurth has formed a new practice group focusing on advising clients on matters related to the issuance, underwriting, purchase and sale of covered bonds.

Allen & Overy and docGenix launched docGenix, an independent firm offering innovative services to give financial institutions the ability to manage documentation risk.

CIFG Holding today announced that its financial guaranty subsidiaries have reached agreements to commute approximately $12 billion in structured finance exposures.

A Fitch Ratings report on the outlook for increasing delinquencies in option ARMs resulting from recasts was released today.

Merrill Lynch has hired Michael Nierenberg from JPMorgan to head global mortgages and securitized products businesses as well as James De Mare from Citigroup to oversee the firm’s mortgage trading operations.

The number of mortgages approved in the U.K. in July 2008 fell by 71% year over year to 33,000 loans from 114,000 in July 2007, according to the Bank of England.

Morrison & Foerster has hired Stephen Birkett as a partner in its corporate group in Hong Kong.

A management shakeup at Fannie Mae has placed Peter Niculescu in charge of the single-family business and capital markets and named David Hisey, the new chief financial officer.

MBIA will reinsure $184 billion worth of Financial Guaranty Insurance Corp.’s U.S. public finance book, providing a boost to municipal bond holders and to FGIC’s statutory capital position, the companies announced Wednesday night.

Fannie Mae and Freddie Mac plan to exit from subprime lending in New York, according to published reports.

Newport Beach-Calif-based Pacific Investment Management Co. (Pimco), a top bond-investment manager, is canvassing the distressed debt market for opportunities, according to a report from Bloomberg.

Mortgage application activity increased just .5% in the week ending Aug. 22, with small gains made in both refinancings and purchasings.