While suing Standard & Poor’s for fraud, states from New Jersey to California ironically are helping fund the world’s largest credit rater’s legal defense by requiring that their pension funds use its rankings.
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.
Carlyle Group won an auction for the management contracts of four collateralized loan obligations overseen by Mizuho Alternative Investments LLC’s U.S. loan management business Mountain Capital Advisors.
The U.S. lawsuit against Standard & Poor’s raises pressure to accelerate competition in the ratings industry while the government itself has adopted rules that left the business dominated by the same companies whose flawed grades sparked the worst financial crisis since the Great Depression.
More than two years after Lehman Brothers Holdings Inc.’s bankruptcy caused the worst financial calamity since the Great Depression, one of its structured products is producing annualized returns exceeding 50 percent.
Four years after defaults on U.S. home loans began to soar, regulators may be crafting their first case against a credit-rating firm for deeming mortgage-backed securities safe investments for pension funds and endowments.
MKP Capital Management LLC’s $2.8 billion hedge fund, profitable every year since it was started more than a decade ago, lost 4.8 percent in the first half of 2011 as bonds tied to U.S. real-estate loans fell.
From July 2004 through April 2007, as credit markets boomed, Goldman Sachs Group Inc. created 23 financial transactions called Abacus, the word for a relatively crude counting tool involving the shuffling of beads.