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Securitization People and Markets

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  • The U.S. Securities and Exchange Commission has unanimously voted to propose a plan aimed at eliminating the types of conflicts that were at the center of a lawsuit against Goldman Sachs over its ABACUS 2007-AC1 collateralized debt obligation.
  • Citigroup is said to be looking to unwind more than $2.2 billion in collateralized loan obligations it created as part of its plan to dispose of collateral held in Citi Holdings, the “bad bank” it set up.
  • Bank of America is said to be considering bankruptcy for its Countrywide Financial unit if losses from litigation against the troubled lender could hurt the parent company.
  • Deutsche Bank is losing a second top securitization staffer with the departure of Cyril Courbage as managing director and head of European real estate.
  • Proposed financial regulations by the Independent Commission on Banking have prompted Santander to postpone an initial public offering of 20% of its U.K. operations until 2013 at the earliest.
  • DBRS has expanded its European structured finance group with the hiring of David Sánchez Rodríguez as an assistant v.p., focusing on Spain and Germany.
  • Collateralized loan obligation veteran Paul Travers has joined Onex Credit Partners as a portfolio manager focusing on the firm’s par and long-only loan strategies.
  • John Mack will step down as chairman of Morgan Stanley at the end of the year, but will remain with the firm in a part-time capacity as a senior adviser.
  • Executives at Two Harbors Investment Corporation, a real estate investment trust, aren’t worried about new rules proposed by the Securities and Exchange Commission that threaten to wipe away the sector’s coveted tax exemption and ability to lever.