Can Pac Swire
The Justice Department announced that it has received more than 36 billion in administrative fines from 19 banks, mortgage originators, and rating agencies for packaging residential mortgage-backed securities before the crisis, selling them, and rating them.
Although many of these securities were backed by subprime and other hazardous mortgages, they all got an "AAA" rating. Investors suffered severe losses when borrowers stopped making payments on their loans and underwriting issues were discovered.
Swiss bank UBS agreed to settle claims made by the Justice Department in a Brooklyn case that was brought in 2018. The bank was charged with deceiving investors by providing information regarding loans totaling more than $41 billion that were used to back 40 mortgage-backed securities that were released between 2006 and 2007.
source: cnn.com
Although many of these securities were backed by subprime and other hazardous mortgages, they all got an "AAA" rating. Investors suffered severe losses when borrowers stopped making payments on their loans and underwriting issues were discovered.
Swiss bank UBS agreed to settle claims made by the Justice Department in a Brooklyn case that was brought in 2018. The bank was charged with deceiving investors by providing information regarding loans totaling more than $41 billion that were used to back 40 mortgage-backed securities that were released between 2006 and 2007.
source: cnn.com