Private equity firms are partnering with big banks to bundle mortgages on more than 200,000 rental homes across the country bought up in the foreclosure crisis into a new financial product known as “rental-backed securities.” New York City has been a private equity playground for the last decade, and the result, unsurprisingly, has been a disaster for tenants and the market alike.
A California judge has tentatively ruled that the state could hold the major financial research company accountable for pinning triple-A ratings on state-bought mortgage-backed securities that went bust in the crash of 2008.
The hedge fund Magnetar helped create billions of dollars’ worth of collateralized debt obligations that super-charged the financial meltdown, profited the company enormously and for which it’s seen no punishment. Here’s a roundup of the known charges, settlements, and investigations that stem from those deals.
Goldman Sachs has demonstrated a remarkable ability to keep pulling in the profits—and bestowing bonuses on company execs—regardless of the state of the global economy, and despite what the bank might have done to damage it in the first place. On Tuesday ... (continued)