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Fannie Mae, the mortgage finance company, will improve disclosure of information about the mortgages it packages as securities for investors, its chief executive, Franklin D. Raines, said yesterday.
That crisis, too, had its origins in invention with a benign aim: the packaging of mortgages for use as securities for bonds was intended to reduce borrowing costs and disperse risk.
That is different from the current mortgage system, in which lenders sell many of the loans they make to Fannie Mae and Freddie Mac, which then repackage them as securities for investors.
At present the ECB has about €220bn in sub-standard Greek and other southern European government bonds on its balance sheet, in addition to much a higher sum of "shaky" government debt instruments deposited by banks as "securities" for ECB loans.
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Mr. Schwarz's mother and two of his aunts put up their two-family home in Staten Island as security for his $1 million bond.
Each then stands as security for the other.
It added it has pledged assets to GM as security for the final payment.
But moonlighting as security for demolition projects adds another level of risk.
Then banks relented and accepted them as security for half their market value.
He was able to offer these tangible assets as security for a bank loan.
First, mortgage loans are pooled and used as security for bonds known as residential mortgage-backed securities, or RMBS.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com