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Securitization People and Markets

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  • IKB Deutsche Industriebank has filed a lawsuit against Bank of America over losses it claims from investments in mortgage-backed securities it bought.
  • U.S. District Judge Denise Cole of Manhattan has proposed a trial schedule for 17 lawsuits brought by the U.S. Federal Housing Finance Agency against banks over mortgage-backed securities, with the first case—with UBS as defendant—to be tried in 2013 and the rest to continue in 2014.
  • Goldman Sachs is said to be raising $351 million for a collateralized loan obligation for Chicago-based Kramer Van Kirk Credit Strategies.
  • The U.S. Federal Housing Finance Agency has revised its 2013-2017 strategic plan to incorporate goals set for Fannie Mae and Freddie Mac, including the creation of a mortgage securitization platform to replace the government-sponsored enterprises.
  • Moody’s Investors Service has downgraded 26 Italian large and midsized banks to among the lowest ratings in European countries, with Banca Monte dei Paschi di Siena reduced to just above junk.
  • The European Union’s Economic and Monetary Affairs Committee has postponed for the fifth time a vote on its mortgage directive.
  • French banks may step up staff reductions following the election of Francoise Hollande as president, who has declared the world of finance as his main adversary.
  • Nearly four out of 10 European investors believe a third long-term refinancing operation by the European Central Bank would be necessary to deal with banks’ funding problems, according to Fitch Ratings.
  • JPMorgan Chase is said the few dozen staffers of the investment bank’s chief investment office are at risk of dismissal in the wake of the reported losses.