The Federal Reserve released some positive news Wednesday about the state of the U.S. economy, pointing to better figures than expected in the second quarter of 2014 while registering ongoing concern about unemployment.
A whole new get-rich-quick scheme is brewing beneath the fanfare of the nation's hyped housing recovery.
In a quarterly regulatory filing Wednesday, the nation's biggest bank revealed that it faces a criminal and civil investigation into "whether it sold shoddy mortgage securities to investors in the run-up to the financial crisis" between 2005 and 2007.
While profits tripled and layoffs commenced in the banking industry last year, Wall Street divided at least $20 billion in gifts made of cash and stock among its employees.
The Federal Housing Finance Agency is set to file lawsuits against more than a dozen big banks for allegedly misrepresenting the quality of mortgage securities they were assembling and peddling at the height of the housing bubble. (more)
Homing in on mortgage-backed securities, New York Attorney General Eric Schneiderman has requested records from Bank of America, Morgan Stanley and Goldman Sachs as part of a broad investigation into the causes of the financial meltdown of 2008. (more)
People close to the case are claiming that AIG executive Joseph Cassano will not face federal charges related to allegations that he misled investors over the company's handling of mortgage-related securities prior to the economic crash and subsequent Wall Street bailout.
Recently disclosed internal documents and an audio recording regarding a 2008 securities standoff between Goldman Sachs and insurance giant AIG appear to be the smoking guns necessary to pinpoint Goldman's culpability in the mortgage meltdown and the collapse of AIG.
In the face of mounting public outrage, AIG has revealed how it spent $75 billion of taxpayer money, a sum that amounts to less than half of the government's $170 billion bailout of the firm. AIG says it gave a sizable chunk of the money to banks, including foreign institutions, and spent a pretty penny to cover junk investments.