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Securitization People and Markets

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  • U.S. District Judge Harold Baer of Manhattan has certified a class action against Goldman Sachs involving residential mortgage-backed securities it sold in 2006 and from which plaintiff investors claim they lost nearly $700 million.
  • U.S. District Judge Mariana Pfaelzer of Los Angeles has dismissed a lawsuit brought by Allstate against Countrywide Financial over $700 million in losses from mortgage-backed securities sold by the firm now owned by Bank of America.
  • Barclays is said to be considering slashing compensation for its 24,000-strong Barclays Capital wing by between 25% and 30%.
  • Citigroup has announced that it is exiting wholesale mortgage lending and will instead devote more resources to correspondent and retail channels.
  • Asset Management Fund has become the latest customer of JPMorgan Chase to sue the investment bank over residential mortgage-backed securities.
  • Cantor Fitzgerald has launched coverage of the U.S. real estate investment trust sector with a team made up mainly of professionals formerly with FBR Capital Markets.
  • Lloyds Banking Group has announced management changes that were hinted at last week by Antonio Horta-Osorio, ceo.
  • Denver-based CoBiz Financial has announced the formation of CoBiz Structured Finance, which it says will provide asset-based loans to middle-market businesses.
  • German cooperative lender DZ Bank has been the latest to file against JPMorgan Chase for alleged misrepresentations in the offering materials of mortgage-backed securities it sold.