toxic assets

JPMorgan Lost $6 Billion? Buy! Buy! Buy!

In May, JP Morgan Chase spooked investors with news that it had racked up $2 billion worth of losses on derivatives trades. Then last week we learned that the loses were much worse -- and the markets sighed with relief.

Why You Should Care
About the Volcker Rule

This week, the government took a big first step toward shutting down the Can't Lose Room in the Wall Street Casino. It's now one comment period away from enacting the Volcker Rule, which limits the kinds of risky investments banks can make with money insured by the U.S. taxpayer.

Did Bear Stearns Know These Securities Were a House of Cards?

JPMorgan Chase may come to regret buying Bear Stearns. Suits by Wells Fargo and bond insurer Ambac claim that Bear entirely disregarded loan quality to appease its trading desk's ever-growing demand for mortgages to securitize. Now, those parties are suing to get their money back, and they might get it.

Allstate Sues Bank of America Over Toxic Securities

Allstate is suing Bank of America and its Countrywide Financial division over Countrywide's sale of $700 million in mortgage-backed securities to the insurance giant, alleging that Countrywide knew in advance that the assets would drop in value because of a high percentage of defaults.

Six Reasons Why Goldman Is Wrong on a Banking Recovery

On Thursday night, venture capitalist and DailyFinance columnist Peter Cohan went on CNBC's "The Kudlow Report" to debate whether the banking industry is at the start of a period of recovery, as Goldman Sachs claimed this week. Here's why he argued that Goldman was dead wrong.

Jury Rejects Bank's 'Meltdown Defense' in Fraud Case

In a case with wider implications for the financial industry, jurors in a class-action securities fraud suit found that BankAtlantic Bankcorp was liable to shareholders for about $42 million for making false statements about the bank's real estate portfolio and net income.

AIG Finalizes Its Plan to Repay the U.S. for Bailout

After months of planning, AIG announced Thursday that it had entered into an agreement with the Treasury Department and the Federal Reserve Bank of New York about how it will repay in full its obligations to the U.S. government and regain its independence.

Flawed Incentives Were the Rot Behind the Mortgage Crisis

The mortgage-backed securities meltdown whose effects still haunt our economy sprang from a simple cause: The rules of the game gave big incentives to every player involved to ignore the problems and keep collecting their fees. And despite financial reform, those rules haven't changed much.

A Wall Street Lawyer's Take on Financial Reform

Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get fairly high marks from Wall Street -- and from Main Street. But will they prevent another economic meltdown?

TARP: One Big Success but Many More Failures

The Congressional Oversight Panel's December report on TARP concluded that it "proved decisive enough to stop the panic and restore market confidence," but failed to address many of the "ongoing problems" in the financial markets and the broader economy. However, it didn't call for ending the program.

Toxic loans threaten 150 banks

Since the beginning of 2009, 72 banks have failed; based on an analysis done by Bloomberg, 150 more are at risk. The culprit is all-too-familiar:...

Who will bail out the Fed?

A number of bloggers have been wondering about the health of the banking system's ultimate backstop, the Federal Reserve. As Barry Ritholtz at the ...

Wanna buy some toxic waste?

Just when I think I have heard it all, they come up with something even more eye-poppingly incredible. Step right up, folks! First they sucked you...

The rally saved Geithner

As positive sentiment continues to build about the U.S. Treasury Department's toxic asset removal program, the latest chatter points to Treasury...