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  • Moody’s Investors Service has downgraded Bank of America, Citigroup and Wells Fargo as a result of the declining probability that the federal government would bail them out again in a future crisis if necessary.
  • The lawsuits filed by the Federal Housing Finance Agency on behalf of Fannie Mae and Freddie Mac against 17 banks over their marketing of mortgage-backed securities are seen as weak.
  • The Association of Financial Guaranty Insurers says Credit Suisse has been misleading by understating its obligation to buy back bad loans packaged into mortgage-backed securities that the Swiss bank issued.
  • VTB24, Russia’s second-largest retail bank, has sold RUR5 billion ($158.9 million) in mortgage-backed securities.
  • JPMorgan is shopping the 144a private, subordinate bonds from its $1 billion commercial mortgage-backed securitization JPMCC 2011-C5.
  • The expected news of U.S. Federal Reserve’s so-called Operation Twist has strategists at the Royal Bank of Scotland urging clients to buy longer-dated agency pass-throughs and collateralized mortgage obligations, a move Jeana Curro’s team said could be smart even if the Fed’s third round of economic stimulus fails to materialize.
  • Redwood Trust is said to have raised the interest rate on the senior class of its $375 million residential mortgage-backed securities deal from 3.6% to 3.9%.
  • Senior bondholders in the legacy Stichting Holland Homes Oranje I and II Dutch residential mortgage-backed securitization are said to have green-lighted plans to restructure the transactions in order to stave off a ratings downgrade.
  • Secondary trading of asset-backed securities began the week lightly, with only Northern Rock’s residential mortgage-backed securities vehicle Granite showing any notable activity.