Daily Archives: July 5, 2017

Germany’s Federal Crime Office Says It Has Panama Papers

BERLIN — Germany’s Federal Crime Office(BKA) said on Tuesday it had obtained a copy of the leaked data known as the Panama Papers that last year revealed how offshore firms are used to stash the wealth of the world’s rich and powerful.

Some 11.5 million documents from the Panamanian law firm Mossack Fonseca were leaked to a German newspaper in 2016 and reports were published in cooperation with the U.S.-based International Consortium of Investigative Journalists (ICIJ).

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Wells Fargo withholds $90 million for legal costs, shakes up mortgage bond market

Wells Fargo held $90 million back from residential mortgage-backed securities investors this week, saying that it needed the money to cover legal expenses. The unexpected move could have an impact on the mortgage bond market.

Bloomberg has the details on how it all breaks down:

The bank said it invoked its right as trustee to hold back funds to cover legal costs. The 20 transactions had a principal balance of $540 million and are among more than 2,000 deals involved in a lawsuit brought by bondholders including BlackRock Inc. and Pacific Investment Management Co. in 2014 to recover losses from the financial crisis.

It’s only the second time that proceeds from bonds involved in that litigation have been withheld from investors. Wells Fargo’s move caused losses for some bondholders and sent others scrambling to assess risks for similar deals in a market still recovering from the bursting of the housing bubble in 2008.

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