Daily Outrage: Major banks bid up their own mortgage bonds

WHAT: A declining market for high-risk mortgage bonds was falsely kept alive as banks bought their own products to boost buyer demand, according to ProPublica, an investigative journalism think-tank headed by former Wall Street Journal editors.

WHO: Primarily active in the price-boosting scheme was Merrill Lynch, but also Citigroup, UBS and others. ProPublica reports that it became a common industry practice by late 2006.

WHY IT’S OUTRAGEOUS: Those ultimately near-worthless mortgage-backed securities were at the heart of the 2008 housing meltdown that still mires the global economy in stubborn recession.

Just Posted

SFUSD going back to basics with school lunches made from scratch

Upgraded culinary center could serve as model for expanded in-house food production.

Sliding doors could open up more space on Muni buses

A simple engineering change could soon make Muni’s 900 buses roomier across… Continue reading

City struggles to find alternatives for inmates in seismically unsafe jail

Mayor London Breed has given City Hall a deadline to close down… Continue reading

E-scooter company Skip announces layoffs after losing SF permit

San Francisco-based e-scooter company Skip this week announced pending layoffs for roughly… Continue reading

Juul suspends sale of flavored e-cigarettes

San Francisco-based e-cigarette maker Juul Labs announced Thursday that it is suspending… Continue reading

Most Read