Month: May 2010

Rating Agency Developments

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On May 5, S&P updated and clarified its methodology for reviewing mortgage originators in U.S. RMBS transactions.  S&P Release.

On April 30, S&P released its updated methodology for reviewing seasoned loans in U.S. RMBS transactions.  S&P Release. 

On April 30, S&P revised its U.S. RMBS Prime, Alt-A, and Subprime assumptions and incorporated the revisions into its LEVELS U.S. mortgage analytical model, version 7.2. S&P LEVELS Release 1. S&P LEVELS Release 2.

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FCIC “Shadow Banking System” Hearings/Staff Report

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On May 5 and 6, the Financial Crisis Inquiry Commission (FCIC) held hearings on “the shadow banking system“.  Testimony was provided by, among others, former executives of Bear Stearns, former Treasury Secretary Henry Paulson and current Treasury Secretary Timothy Geithner.  In addition, a preliminary staff report on the shadow banking system was submitted to the FCIC on May 4.  Comments are requested by June 18.  Staff Report, and Hearings and Testimony.

FDIC Sale of SFG Assets

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On May 4, the FDIC announced that it signed a bid confirmation letter with Square Mile Capital Management LLC by which Square Mile will buy a 40% equity interest in an LLC which was created to hold approximately $421 million (unpaid principal amount) of performing hospitality loans and loan participation assets of SFG, a subsidiary of Silverton Bank, Atlanta Georgia, which failed on May 1, 2009.  The FDIC will hold the remaining 60% equity interest.  The sale is expected to close mid-May.  FDIC Release.