The biggest Wall Street banks have spent more than $93 billion dealing with the fallout from the housing bust, settling disputes with the U.S. government and homeowners. Now they must face the Germans.
In early 2007, with subprime-mortgage defaults soaring, Wing F. Chau teamed with Merrill Lynch & Co. to create a $300 million pool of assets that shared a name with the main character in The Matrix movies who discovers reality isn’t what it seems.
The court official overseeing the liquidation of Lehman Brothers Holdings Inc.’s brokerage called for firms to have liquidation plans in place to avoid the disorder following Lehman’s collapse in 2008.
Water and electric customers in the Seattle area, most of whom pay U.S. taxes, will pay an additional $14 million to get out of an agreement with American International Group Inc., the insurance company rescued from insolvency in 2008 by American taxpayers.
Illinois sold $300 million of Build America Bonds at a yield premium over Treasuries about 40 percent higher than two months ago after lawmakers failed to close a $13 billion budget deficit for the year starting July 1.
Two mortgage-linked investments tied to hedge-fund firm Magnetar Capital LLC had better disclosures about conflicts of interest than a Goldman Sachs Group Inc. transaction, Securities and Exchange Commission staff told the bank’s lawyers in a meeting.
Redwood Trust Inc. and Citigroup Inc. partnered to create the first new-mortgage securities without government-backed guarantees in more than two years, selling $222.4 million of the debt at lower yields than initially offered.