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Securitization People and Markets

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  • Citigroup has created a task force to manage its assets related to subprime mortgage securities after the bank said it may write down up to $11 billion (after taxes) due to its $55 billion exposure to U.S. subprime mortgages that led to the departure of ceo and chairman Charles Prince.
  • Calyon is expected to announce next week a reorganization that will name replacements for senior credit officials who departed in the wake of proprietary trading losses last month (TS, 9/21).
  • Diane Wold will be stepping down as the managing director and head of investment banking at GMAC-ResCap at the end of December. She will also leave her post as deputy chair of the board of directors at the American Securitization Forum
  • London securitization teams have suffered from widespread job losses from major U.S. investment banks as protracted stagnation in the European market has hit business hard.
  • Lehman Brothers announced last Monday it had raised about $3 billion for the Lehman Brothers Loan Opportunity Fund to focus on opportunistic investments in a range of leveraged loans.
  • Greg Medcraft, managing director and global head of securitization at Société Générale, is leaving the firm after 27 years.
  • Moody’s Investors Service will be cutting its workforce companywide after posting a 7% decline in net income for the quarter ending Sept. 30.
  • Mortgages plc, the specialist U.K. non-conforming mortgage subsidiary of Merrill Lynch, is cutting approximately 20% of its 325-strong workforce.
  • UBS made an operating loss of CHF726 million ($625 million) in its third quarter after taking "substantial losses and writedowns" on trading positions in the U.S. subprime residential market worth CHF 4.2 billion ($3.6 billion).