Private-label

Credit Suisse Group must face New York Attorney General Eric Schneiderman's $10 billion lawsuit accusing the bank of fraud in the sale of mortgage-backed securities prior to the 2008 financial crisis, a state appeals court ruled Tuesday in a split decision.

A group of traders in JPMorgan's investment bank has expanded from selling commercial mortgage-backed securities to underwriting loans that are unsuitable for bonds, such as those for big construction projects.

One of latest proposals for reviving the private-label residential mortgage market involves improving communications between issuers and investors.

Some mortgage bond traders tangled up in investigations are moving into the shadow banking system, where their new employers have greater latitude to hire people with blemishes on their records.

President-elect Donald Trump's imminent choice for Commerce secretary is a billionaire investor who swooped in to prop up troubled banks after the financial meltdown. Some members of the banking world, including regulators, may be glad he was picked for Commerce chief instead of Treasury secretary.

Ally Financial has agreed to pay $52 million to settle probes and claims related to its role as the underwriter for subprime mortgage-backed securities in 2006 and 2007.

Shellpoint Partners is preparing its first private-label mortgage securitization in over a year, according to Kroll Bond Rating Agency.

A third securitization of single-family rental properties by Colony American Finance is also the smallest to date for the REIT-affiliated lender.

Barclays is trying to draw a line at $2 billion in penalties to settle a U.S. investigation into its sale of mortgage securities after it received an opening offer that it considered too high.

Moody's Corp. said federal officials are planning a lawsuit over its ratings of residential mortgage securities that critics contend were inflated to win business in the years leading up to the 2008 financial crisis.