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But federal regulators play a limited role in subprime markets.
Mr. Mudd is also caught up in subprime litigation.
The rate of loss in subprime mortgages keeps climbing.
Many brokers who specialized in subprime loans have disappeared.
As it expanded at a breakneck pace, the company opened too many Starbucks in subprime locations.
MARKETS can misprice risk, as investors in subprime mortgages discovered in 2008.
Mr. Kelsoe became an early, prominent casualty of the crisis in subprime mortgage bonds.
Those that did dabble in subprime loans were able to withdraw quickly.
Washington has even adopted the worst of private-market practices in subprime mortgages.
By 2007, however, the fund was almost entirely invested in subprime securities.
The state-owned Bayerische Landesbank lost €4 billion ($6.23 billion) in subprime punts.
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