Sentences with phrase «subprime mortgage securities»

That set off a collapse in the market for subprime mortgage securities, a crisis that nearly brought down the financial system.

The office, the people said, initially planned to sue JPMorgan as soon as Tuesday over accusations that the bank flouted federal laws with its sale of subprime mortgage securities from 2005 to 2007.

In that case, led by the civil division of the United States attorney's office for the Eastern District of California, prosecutors found that JPMorgan flouted federal laws with its sale of subprime mortgage securities from 2005 to 2007.

«I don't think anyone was bailed out here,» said Jim Midanek, whose hedge fund firm, Black Pearl Asset Management, plans to buy cheap subprime mortgage securities battered by the current crisis.

Since the most senior tranche (s) was like a «bucket» being filled with the «water» of principal and interest that did not share this water with the next lowest bucket (i.e. tranche) until it was filled to the brim and overflowing, [24] the top buckets / tranches (in theory) had considerable creditworthiness and could earn the highest credit ratings, making them salable to money market and pension funds that would not otherwise deal with subprime mortgage securities.

Back then there was rampant mortgage fraud, huge demand from Wall Street for subprime mortgage securities and rating agencies giving them black checks, with no regulatory oversight whatsoever.

The culprit was a small stake in subprime mortgage securities, which, according to Morningstar, amounted to 2.5 % of the fund earlier this year.