From: here@is.invalid   
      
   Whistleblower: Wall Street Has Engaged in Widespread Manipulation of   
   Mortgage Funds   
      
   Securities that contain loans for properties like hotels and office   
   buildings have inflated profits, the whistleblower claims. As the   
   pandemic hammers the economy, that could increase the chances of   
   another mortgage collapse.   
   ...   
   ...   
   The result: Many properties may have borrowed more than they could   
   afford to pay back---even before the pandemic rocked their businesses   
   --- making a CMBS crash both more likely and more damaging. "It's a   
   higher cliff from which they are falling," Flynn said. "So the loss   
   severity is going to be greater and the probability of default is   
   going to be greater."   
      
   With the economy being pounded and trillions of dollars already   
   committed to bailouts, potential overvaluations in commercial real   
   estate loom much larger than they would have even a few months ago.   
   Data from early April showed a sharp spike in missed payments to   
   bondholders for CMBS that hold loans from hotels and retail stores,   
   according to Trepp, a data provider whose specialties include CMBS.   
   The default rate is expected to climb as large swaths of the nation   
   remain locked down.   
      
   https://www.propublica.org/article/whistleblower-wall-street-has   
   engaged-in-widespread-manipulation-of-mortgage-funds   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)