View more on these topics

Toxic mortgage bond sales to be probed

The Serious Fraud Office is investigating potentially fraudulent sales of mortgage-backed securities in the UK in the run-up to the financial crisis.

The probe comes after it emerged that US regulator Federal Housing Finance Agency is filing lawsuits against 17 banks for their role in the sale of toxic mortgage bonds to Fannie Mae and Freddie Mac between 2005 and 2007.

The Royal Bank of Scotland, HSBC and Barclays are among the banks involved.

A spokeswoman for the SFO says: “The scoping exercise is a development of earlier work over the last two or three years looking at Citybased fraud risks. One aspect of this is asset-backed securities.”

It has been reported that securities packaged by Deutsche Bank are among the deals being examined by the SFO.

It is also believed to be looking into Goldman Sachs, including the Timberwolf deal, a mortgage security that was underwritten by the bank in 2007.



Near-prime time

Near-prime is a growing niche which can offer borrowers locked out of the mainstream market a helping hand. But take-up of these products has been low so we ask the experts to shed some light on the sector

Job losses on the cards as Xit2 plans relocation to Kent

Xit2 plans to relocate its head office from Oxford to Kent, which will result in redundancies at the firm. The mortgage and property outsourcing specialist was acquired by Decision Insight Information Group in January 2011. Xit2 is moving its base from Charlbury to DIIG’s European headquarters in Kent. Mark Blackwell, managing director of xit2, says […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • Peter L. Griffiths 31st October 2011 at 2:52 pm

    Mortgage backed securities originating from Fannie Mae make up most of the toxic assets held by the world’s banks. This situation arises either from the world’s banks misunderstanding the terms of the issue or from a deliberate fraud approved by the United States Government, and overlooked by other Governments.