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What's the Latest in Securitization News?

The latest in covers many areas of the world and sectors, which may be up or down at any given time. One area of interest concerns the FDIC and changes this agency is making to the rules and standards for accounting in the United States when it comes to securitizations. These changes have a couple of consequences, and this has made it a big subject in securitization news. One consequence is that some entities, including banks, will no longer be able to take advantage of certain preferential treatments when it comes to their qualifying special purpose entities. Another is that a lot of Asset Backed Commercial Paper conduit sponsors will probably have to condense and consolidate these conduits under the new regulations.

As housing markets fell, defaults and losses in this sector rose. The housing and mortgage markets have been partly blamed for the global recession which was present in 2008 and 2009. Some investment security firms went under, such as Bear Stearns and others who were well known on Wall Street. Bernie Madoff Investment Securities was another scandal, with Madoff admitting to running one of the biggest and longest running Ponzi schemes ever. Investors lost billions and Madoff has been given a punishment for his actions. Investigators are still trying to recover some of the missing billions, and defrauded investors are lined up to try and recover some of their losses. Other key personnel in the firm have also received jail time as well for their parts in the massive fraud.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.