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Securitization People and Markets

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  • UBS has admitted that it failed to take action once it uncovered evidence of authorized trading, which led to losses of $2.3 billion at the Swiss bank.
  • David Kaplan, head of residential mortgage-backed securities trading at PrinceRidge, was let go yesterday, reportedly as part of cuts on the securitization side of the business as the two-year-old group looks to focus instead on corporate financing. Kaplan could not be reached for comment.
  • Agency residential mortgage-backed securities veteran Greg Reiter has left the Royal Bank of Scotland.
  • The French and Belgian governments have agreed to provide guarantees to Dexia’s new bad bank to protect depositors and its municipal lending business.
  • Valcour Capital Management has hired John D’Angelo to head its bank debt group.
  • Bank of America has decided to close its correspondent-lending unit by the end of the year after negotiations with Fortress Investment Group broke down.
  • The Bank of England’s Financial Policy Committee has urged U.K. banks to resist dropping capital and liquidity levels in an effort to boost the credit supply.
  • A deal between the Royal Bank of Scotland and The Blackstone Group to clear some of the soured property loans from the bank’s balance sheet appears in danger of falling apart.
  • StormHarbour Securities has hired Paulo Gray as a principal and managing director in London, where he will head fixed income sales and trading, structuring and advisory, and capital markets for the Iberian region.