The Treasury Department announced over the weekend that a pared-down plan to help banks unwind distressed mortgage assets will be in full swing by the end of October, a year after Capitol Hill lawmakers dedicated $700 billion to the cause. Under the Public-Private Investment Program announced last March, nine specially appointed money-management firms will use private capital and matching federal money to purchase toxic mortgages and mortgage-backed securities from troubled banks and lenders.
The distressed conditions that have plagued residential real estate are now spreading to commercial real estate, but that is setting the stage for more investor capital to move into the sector, according to one restructuring expert.
A new effort by Wall Street to re-securitize some toxic mortgage obligations held by financial institutions is drawing the skepticism of regulators who see it as deja vu all over again. In a new process called "re-remic," banks and insurance companies are once again paying fees to investment banks and rating agencies, this time to split up the assets in mortgage-backed securities into good bonds and bad bonds.
The head of the Federal Deposit Insurance Corp. told listeners at a global conference last weekend that she wanted expand regulation of the financial system, including an end to the practice of bailing out institutions that are "too big to fail."
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Rob Alley, Realtor
Keller Williams Realty
540-250-3275
roballeyrealtor@gmail.comhttp://www.charlottesvillevarealestate.blogspot.com http://www.robsellscharlottesville.comOh, by the way, I am never too busy to work any of your referrals.
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