Banks Lose Billions From Mortgage Mess
United States banks are losing billions of dollars from the mortgage debacle. As credit woes threaten the broader economy, investigators are trying to determine whether Wall Street investment banks bundled risky loans with good ones without properly disclosing such risk to investors.
Law enforcement officials are scrutinizing whether banks and mortgage lenders helped fuel the crisis by misleading investors about dicey housing assets and then covered up losses when the markets turned sour. Many of the bank assets that diaappeared were explicitly marketed as involving borrowers with troubled credit histories, alerting investors that they were high-risk bets.
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