Mish’s Global Economic Trend Analysis: Bankruptcy Reform Act Finally Blows Sky High …After the fairy godmother (Bush) signed the bill written by industry lobbyists and passed by Congress as "reform", banks and lending institutions went on a credit binge of previously unimaginable proportion. The most ridiculous abuse of common sense were the so called "Liar Loans" more commonly referred to as "Stated Income Loans".

Investment Executive : IOSCO releases report on subprime crisis IOSCO releases report on subprime crisis

Investment Executive : Securities regulators one step closer to mutual recognition with U.S. The chairmen of four Canadian securities regulators and the Chairman of the U.S. Securities and Exchange Commission (SEC) announced today a schedule for the completion of a process agreement that would open the way for discussions of a potential U.S.-Canada mutual recognition arrangement.

Investment Executive : Investors don’t want separate ratings scales for structured products, rating agencies say Investors don’t want separate ratings scales for structured products, rating agencies say

Bank Lawyer’s Blog: An Elephant Stampede Two and one-half years ago, we were talking about an "elephant in the room" for the mortgage banking business: loan repurchase obligations. In November 2005, the problem was primarily with respect to subprime mortgage loans. Today, according to The Wall Street Journal, the elephant is stomping throughout the house, smashing furniture in every room, and leaving a memento of his presence on every loan originator’s favorite sofa cushions.

com_20080528_31-103_ladnerb.pdf (application/pdf Object)

 However, there is some uncertainty
whether an exempt market dealer would be required to adhere to these same conduct
rules and obligations with respect to its dealings, from within Canada, with investors
resident outside of Canada, in particular where the activities are such that they would
not otherwise require registration in Canada. For example, an existing foreign
investor wishing to switch from one Orbis Fund to another may telephone the Orbis
call centre in British Columbia to enquire about the mechanics of doing so. Our client
considers that the mere provision of administrative information by a representative of
an exempt market dealer should not precipitate the need for a suitability review of the
investment decision of a foreign investor in relation to their investment in an
investment fund or other issuer located outside of Canada, on the basis that the laws of
the jurisdictions where the investor and the issuer are located should appropriately
regulate these activities.

Alea | Libor Analysis: Wall Street Journal Edition The Wall Street Journal discovers the “default-insurance market”

Calculated Risk: BK Judge Rules Stated Income HELOC Debt Dischargeable BK Judge Rules Stated Income HELOC Debt Dischargeable

RGE - Broad Support Among Economists and Experts of the Goal of Providing Mortgage Debt Relief to Distressed Borrowers Broad Support Among Economists and Experts of the Goal of Providing Mortgage Debt Relief to Distressed Borrowers

naked capitalism Ambrose Evans-Pritchard of the Telegraph looks at the rise of credit default swaps prices on investment banks and increasing interbank spreads, both indicators of heightened concern about counterparty and systemic risk.