NewsCloud.com Subprime News

Military town foreclosures: echoes of the Great Depression

US soldiers who put their lives on the line in Iraq are losing their homes because of the subprime crisis. The last time veterans lost their homes to this extent was during the Great Depression

Blame subprime on the banks: accounting rule-maker

An accounting rule maker says the banks have created the subprime crisis

Subprime crisis drives litigation

Litigation is on the increase with the subprime crisis

Mark to market mess

To what extent is the subprime meltdown the result of an accounting technique

Subprime's parallels with Enron and WorldCom: Michael Oxley and Paul Sarbanes

The subprime crisis has some eerie parallels with Enron and WorldCom, say the two Sarbox co-authors. Michael Oxley and Paul Sarbanes says what's needed is more regulation

Pay packages rewarding failure

The big bonuses and payouts for executive might well have contributed to the subprime meltdown. All of the CEOs who failed got paid very well. Therefore, the pay plans had very perverse incentives.

Insurers: the latest subprime victims

The subprime disaster is hitting insurers hard with Fitch Ratings saying US life insurers have an estimated $7 billion to $8 billion in unrealized losses on subprime. There are several reasons why insurers will be the next big victims. And everyone will pay.

Criminalizing capitalism: Sarbanes-Oxley and the latest crisis

Sarbanes-Oxley not only failed to stop the subprime meltdown. It contributed by giving investors the false confidence that they could rely on the law, and not prudence to protect their market holdings.

Subprime mess: where was the SEC?

Why was the SEC asleep at the wheel in the lead-up to the subprime crisis? Bad risk management and it did not want to clamp down on this market.

Subprime fraud

The FBI is conducting criminal investigations into how subprime loans were made and packaged, and how securities backed by them were valued. There are also questions of insider trading violations. This was always going to happen. But is the SEC now protecting subprime lenders?

Presidential candidates' subprime solutions

Should there be a tax break for subprime victims? How about a freeze on interest rates? The candidates for the US presidential elections are coming up with different solutions to the problem.

Lawsuits increase with subprime

Lawsuits are on the increase, up 43 per cent on last year. And the combination of subprime and market volatility is driving that increase.

Lobbyists, subprime and the Rolling Stones

While the US was heading into the subprime meltdown, lawmakers around the country were being dissuaded from bringing in laws to curtail their sharp lending practices. Top stop them, the subprime industry was handing out cash and gifts, including free Rolling Stones tickets to people like Arnold Schwarzenegger..

Will subprime trigger a recession?

So will the subprime crisis drag the US into a recession in 2008? Depends who you ask.

Massive jump in securities lawsuits

The 18-month decline in shareholder class action filings has reversed course, with 2007 federal filings projected to increase by 58 per cent compared to the previous year, And subprime is driving a lot of it.