Officials Target Mortgage Mess in U.S.

Officials Target Mortgage Mess in U.S.
Actions to deal with effects of credit crisis include legislation, rule changes and arrests. Transcript of radio broadcast:
26 June 2008

This is the VOA Special English Economics Report.

American lawmakers and law enforcers are busy with the housing finance market.

Many of the recent problems were caused by subprime mortgages. These highly profitable loans were marketed to risky buyers and then sold to investors. But even homeowners with good credit are having trouble with other new kinds of loans.

A Senate bill could help some people get lower-cost loans. It would let the government guarantee three hundred billion dollars in new financing.

The first big sign of problems with mortgage investments, which led to a worldwide credit crisis, came last summer. Two funds of the Bear Stearns investment bank collapsed. They were heavily invested in risky home loans. Investors lost almost one and a half billion dollars.

Last week, the Justice Department announced charges against the two men who led the hedge funds, Ralph Cioffi and Matthew Tannin. Officials say that by March of last year, the managers believed the funds were at risk of collapse, but lied to keep investors from leaving. Both men have pleaded not guilty.

Separately, the Justice Department and the Federal Bureau of Investigation announced the results of Operation Malicious Mortgage. That investigation led to more than four hundred arrests in the last three months.

The people were charged with mortgage-related misrepresentations and other criminal abuses. The F.B.I. estimates that these mortgage fraud cases resulted in about one billion dollars in losses.

Officials said nineteen companies were being investigated in connection with subprime loans. They included mortgage lenders, investment banks, hedge funds, accounting companies and credit rating agencies.

This week, the Securities and Exchange Commission proposed new rules for credit rating agencies. The aim is to reduce the dependence of money mangers and investment banks on credit ratings as a measure of risk.

Critics say credit rating agencies seriously underestimated the risk of many mortgage-related securities.

And, shareholders in the nation's largest mortgage company, Countrywide, agreed Wednesday to sell the company to Bank of America. Countrywide has lost billions on bad loans, and its lending activities are the target of lawsuits. Also, there are accusations that some lawmakers in Congress got special treatment on loans through its chief, Angelo Mozilo.

And that's the VOA Special English Economics Report, written by Mario Ritter and online at voaspecialenglish.com. I'm Jim Tedder.

----------------------------Google Translate

官员目标按揭一塌糊涂，在美国
行动，以处理影响信用危机，包括立法，规则的改变和逮捕。全文电台广播：
2008年6月26日

这是美国之音特别英语经济学报告。

美国国会议员和执法人员都在忙于与住房金融市场。

许多最近的问题所造成的次级抵押贷款。这些高利润的新批出贷款中销售给有风险的买家，然后出售给投资者。但即使拥有良好的信用遇到困难，与其他新种贷款。

参议院法案可以帮助一些人获得成本较低的贷款。它将让政府保证3000.0亿美元，在新的融资。

第一个大的迹象，问题与按揭的投资，从而导致全球性的信用危机，去年夏天来到。这两个基金的贝尔斯登投资银行崩溃。他们大量投资于高风险住房贷款。投资者失去了几乎一个半月亿美元。

上星期，美国司法部宣布起诉两名男子，谁为首的对冲基金，拉尔夫cioffi和Matthew单宁。官员说，由去年3月，该经理认为，资金在倒塌的危险，但说谎，保持投资者离开。这两个人都拒不认罪。

另外，美国司法部和联邦调查局公布的结果，运作恶意按揭。调查认为，导致以上的400人被捕，在过去3个月。

该人被落案控以按揭有关的失实陈述和其他犯罪行为。该f.b.i.估计，这些按揭诈骗案件，造成约十亿美元的损失。

官员说， 19公司正在调查他涉嫌与次级贷款。它们包括抵押贷款机构，投资银行，对冲基金，会计公司和信贷评级机构。

这个星期，美国证券交易委员会提出的新规则，信贷评级机构。目的是要减少依赖钱经理和投资银行对信用评级作为衡量的风险。

批评人士说，信贷评级机构严重低估的风险，许多抵押相关的证券。

和，股东在全美最大的抵押贷款公司，在全国范围内，周三同意出售该公司美国银行。在全国范围内已失去数十亿关于不良贷款，其贷款活动的目标诉讼。也有指责一些国会议员在国会得到特殊待遇的贷款，通过其行政，安吉罗mozilo 。

这是该美国之音特别英语经济学的报告，书面，由马里奥里特尔和网上voaspecialenglish.com 。我吉姆tedder 。