More On Wall Street Hedge Funds Holding Bets On The Tanking Of Subprime Market

The possible crossfire that many subprime mortgage borrowers in trouble may find themselves in is the subject of a recent article by The Associated Press and is making its way around numerous media outlets around the country. The crossfire is between the big Wall Street hedge funds who bet that the subprime mortgage market would go south (and who are against any form of loan modifications because they only get to "cash their bets" when the market goes south), and the Wall Street mortgage-backed securities packagers, who are beginning to modify the troubled loans in their securitizations to help stabilize the subprime market and help keep borrowers in their homes. For the story, see Dispute among Wall Street titans could affect foreclosures.

Go here for other posts on the tug-of-war among the Wall Street giants. MortgageServicingIssuesAlpha