With its allegation of securities fraud against Goldman Sachs, the Securities and Exchange Commission has finally taken dead aim at Wall Street’s behaviour in the housing boom.
The controversy over hedge funds shorting synthetic collateralised debt obligations in the late stages of the mania has focussed on Magnetar, the fund I wrote about this week. Read more
Jingle mail – the practice of handing back the keys to a property you have borrowed money to buy when your equity is wiped out by falling prices – is not confined to home owners in California.
Defaulting on mortgages was frowned upon by some when done by homeowners in California – as Felix Salmon once pointed out – but is spreading to commercial real estate funds. Read more