Capital markets

New rules proposed by international banking regulators would severely reduce, and possibly eliminate, banks' profitability in trading bonds that finance everything from home loans and apartment mortgages to auto loans and student debt, according to JPMorgan Chase & Co.

BlueVirgo Capital Management is marketing $106 million of bonds backed by tax-lien certificates on property in New Jersey and Florida, according to Kroll Bond Rating Agency.

Five Oak Investment Corp, a real estate investment trust that manages a portfolio of agency and nonagency RMBS, is back with a second securitization this year, according to Kroll Bond Rating Agency.

Freddie Mac Chief Executive Donald Layton insisted Tuesday that the government-sponsored enterprise showed "very strong fundamentals" in the third quarter, despite reporting a $501 million loss due to an accounting mismatch with its use of derivatives.

American International Group Inc. CEO Peter Hancock dismissed activist investor Carl Icahn's proposal to split the company into three insurers, saying a division would limit earnings diversity and reduce the value of some tax assets.

Freddie Mac posted a third quarter loss of $501 million, its first quarterly loss in four years, but the government-sponsored enterprise will not request a draw from the U.S. Treasury.

The government-sponsored enterprise is working to rebuild partnerships with church organizations and housing financing agencies as part of a broader effort to make owning a home affordable for low- and moderate-income families.

Canadian Imperial Bank of Commerce said there's "no merit" to a lawsuit filed by a unit of Cerberus Capital Management LP accusing the bank of defaulting on payments tied to U.S. real estate.

Deutsche Bank is exiting agency residential mortgage-backed securities trading as part of a larger strategic plan announced Thursday that cuts thousands of positions in numerous business lines worldwide.

The administration apparently intends to leave office without addressing Fannie Mae and Freddie Mac's capital bases and therefore the tight credit conditions.