Citigroup has settled their toxic mortgage securities case with the Justice Department for $7 billion. This agreement is the latest in the federal governments effort to hold companies accountable that made subprime mortgages, pooled and packaged them into bonds and sold those bonds to investors. These bonds, many of which were rated AAA (the highest rating for the safest securities), turned out to be worthless or close to it. Thus earning then name toxic assets, as those who held them had such loses that many banks, investment companies, investors and even governments became insolvent.
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AuthorGenna Walsh Archives
February 2020
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