Feb
04
Wall Street Pulls Back From Mortgage Market That Fed Made Boring
By-
Trading volume has fallen by more than 40 percent in MBS
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Fed now owns nearly a third of U.S. government MBS market
The U.S. Federal Reserve is squeezing a good deal of the profit out of mortgage bond trading, and Wall Street banks are increasingly heading for the exits.
Barclays Plc cut 20 jobs in its U.S. government-backed mortgage bond business in January as part of a broader bank reorganization that is cutting 1,200 jobs, according to a person with knowledge of the matter. Deutsche Bank AG and Societe Generale SA have also scaled back in the market in recent weeks, people with knowledge of those moves said…
Wall Street Pulls Back From Mortgage Market That Fed Made Boring
