Exact(2)
Government-sponsored companies like Fannie Mae and Freddie Mac, and the big investment banks, especially Bear Stearns and Lehman Brothers, buy loans, package and resell them.
Wall Street was there to pick up their subprime loans, package them with other loans (some quality, some not), and sell them to investors.
Similar(53)
(The studies cover only loans packaged into securities, not those held on the books of banks).
Investors were assured, the lawsuit said, that the firm scoured the loans packaged into the investments to assure their quality.
An "unprecedented" number of the loans packaged and sold to investors came from mortgage brokers, it said.
Administration officials feared that banks would refuse to make new loans and that the $300 billion market would dry up for construction and real estate loans packaged as securities.
According to the complaint, the bank dismissed flaws in the loans packaged into securities even while assuring investors that the quality was sound.
It allows loans to be packaged using an average interest rate instead of requiring that all loans packaged together for sale on the secondary market have the same interest rate.
CLOs are giant pools of corporate loans packaged to allow issuers to magically transform risky leveraged loans into triple-A bonds and sell them.
The investors had demanded Bank of America repurchase home loans packaged into 530 mortgage trusts with a original loan balance of $424 billion.
THE loan package was meant to fix Spain's woes.
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