When it comes to residential mortgage-backed securities litigation, much of it relates to plaintiffs who experienced losses on mortgages sold off before the financial meltdown.

But the Wall Street Journal has uncovered a new potential leg of the crisis.

The paper says regulators are investigating several big banks to discover if traders may have exploited ‘murky pricing’ on RMBS from the time period stretching from 2009 to 2011.

The focus is on whether the goal was to buy or sell investments at artificially depressed or inflated prices, the paper said.

This is the WSJ story in a nutshell:

"In that postcrisis period, when the economy remained shaky and many markets weren't yet active again, banks still held on their books billions of dollars in hard-to-price assets. Regulators are seeking information about whether banks made significant misrepresentations about some of those assets to make deals.

The banks under scrutiny include Barclays, Citigroup, Deutsche Bank, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley, Royal Bank of Scotland and UBS."

 

Most Popular Articles

Fannie Mae, Freddie Mac watchdog prepping for "massive IPO"

The watchdog for Fannie Mae and Freddie Mac is interviewing Wall Street firms to handle a public offering that would dwarf any IPO in history, Fox says.

Dec 09, 2019 By

Latest Articles

MBA: These 5 factors will fuel the future of multifamily, commercial real estate

Multifamily and commercial real estate have had a great year in 2019, and its only expected to get better in 2020 and beyond. Here are five factors the MBA said to watch that will fuel the future of CRE.

Dec 10, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please