Articles by Diana Golobay

General Counsel Out at FDIC

Michael Bradfield is resigning his post as general counsel of the Federal Deposit Insurance Corp. (FDIC), effective August 13. He served in the capacity since May 2009. "Mike's broad professional experience has brought immense value to the FDIC on a host of legal and policy issues," said FDIC chairman Sheila Bair. "His knowledge of domestic and international banking issues and command of the regulatory framework has served the FDIC well through a period of challenging resolution activity and the many legal issues stemming from these bank failures."
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Investor Concerns on Deflation Turn Treasury Securities into Negative Territory: Economist

The yield on 5-year US Treasury inflation-protected securities (TIPS) recently slipped into negative territory. The fall in Treasury yields bode well for the mortgage bond investment market. The declining yield on 5-year TIPS arrives as the 25 largest banks have been seen getting back into "attractive" mortgage-backed securities (MBS), in recent weeks adding the most MBS in 18 months.
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AIG Losses Return in Q210 on Continued Wind-Down Efforts

Troubled Insurer American International Group [stock AIG][/stock] reported a $2.7bn net loss in the second quarter of 2010 (Q210), compared with a $1.8bn net income in the year-ago quarter. AIG returned to a loss this quarter after posting a $1.5bn profit in Q110 on improved mortgage results. The company's losses reflect a $3.3bn non-cash goodwill impairment charge related to American Life Insurance Company (ALICO), a unit AIG plans to sell by year-end.
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U.S. Payrolls Shed More than Expected, Dropping 131,000 in July

Total non-farm payrolls declined by 131,000 in July, worse than a market consensus decline of 70,000. According to the Department of Labor Bureau of Labor Statistics (BLS), the firings of temporary workers after 2010 Census efforts edged up to 143,000 in July, declined from 225,000 Census layoffs a month earlier.
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Bill to Let FHA Raise Annual Premiums Heads to Obama

The Senate approved its versions of HR 5872 and HR 5981, which would respectively raise the Federal Housing Administration's (FHA) multifamily commitment authority and allow it to hike its annual premiums for its single-family program. Both bills now travel to the desk of President Barack Obama to be signed into law.
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Growth in Global Distressed Property Sales Eases: RICS

Fewer countries reported expectations of growing distressed property sales in the second-quarter survey conducted by the Royal Institution of Chartered Surveyors (RICS). Growth in global distressed property listings -- those listed for sale by the lender or under foreclosure order -- eased back across 85% of the countries surveyed since the Q110 survey. The growth in distressed property sales is contracting, with 13 of 25 countries reporting an increase in distressed sales in Q210, down from 17 countries in the previous quarter.
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NY Fed Looks to Require Lenders to Take Back Bad Mortgages

The New York Federal Reserve Bank may require mortgage lenders to repurchase loans from within portfolios of securitizations. The assets are located in the Maiden Lane (ML) portfolios, created to buy troubled assets including residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs) from Bear Stearns and American International Group (AIG) as part of the government's bailout of financial firms.
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Weekly Jobless Claims Rise More than Expected, to 479,000

Initial unemployment insurance claims rose 19,000 in the week ending July 31, marking a departure from market expectations of a small decline last week. Jobless claims rose to a seasonally adjusted 479,000 from the previous week's downwardly revised figure of 460,000, according to new data today from the US Department of Labor. The four-week moving average rose 5,250 to 458,500.
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