Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.

FSA sounds alarm on subprime lending (4 July)

The Financial Services Authority has started disciplinary action against five mortgage brokers for weak "responsible lending" practices in the subprime mortgage market.

The UK financial regulator on Wednesday issued a damning report on the sector, which lends to borrowers with spotty credit histories. Arrears among subprime borrowers are currently running at 20 times those of mainstream mortgage holders, sparking concerns firms have taken on excessive risk in ramping up their lending in this area.

SEC examines subprime market (27 June)

The Securities and Exchange Commission yesterday said it had initiated a broad-based investigation into the troubled subprime mortgage market.

Christopher Cox, chairman of the SEC, told a congressional panel that the regulator was investigating a dozen subprime mortgage issues, including collaterallised debt obligations (CDOs), which are repackaged pools of debt sold to investors.

The SEC is also looking into the secondary market for these instruments.

Asked what had prompted the scrutiny, Mr Cox said "the climate and the environment". He added: "The attention that is being paid generally to problems in this area causes us to be alert to the potential for violations of the laws and regulations that we enforce."

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Jul 4th, 2007 at 12:24:48 PM EST
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Funny.  CCox naming the problem "the climate and the environment" and then admitting the SEC is way behind the industry he is in charge of regulating.

Our knowledge has surpassed our wisdom. -Charu Saxena.
by metavision on Fri Jul 6th, 2007 at 07:24:53 PM EST
[ Parent ]


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