The Good

• The Department of Justice files a $5 billion suit against ratings agency S&P for misrepresentation of risks in MBS they rated. Aruna Viswanatha and Lauren Tara LaCapra at Reuters
  February 5, 2013
• Yves Smith describes Judge Jed Rakoff’s ruling in a rep and warranty case, in which bond insurer Assured got nearly everything it wanted from the mortgage originator Flagstar as “a game-changer” and a huge blow to Bank of America and JPMorgan. Naked Capitalism
  February 6, 2013
• Elizabeth Warren and Elijah Cummings begin an investigation into the recent OCC/FED settlement with mortgage servicers that ended the Independent Foreclosure Review process. Yves Smith at Naked Capitalism
  February 4, 2013

The Bad

• A 2006 SEC law which “discourages entry and discourages new ideas and new ways of doing things” will undermine the DOJ lawsuit against S&P, which accuses them of deliberately misrepresenting bonds to get Wall Street business. Matt Robinson at Bloomberg
  February 6, 2013
• Timothy Geithner has been named a “distinguished fellow” at Robert Rubin’s Council on Foreign Relations. The paycheck might not come directly from Wall Street, but it’ll get there nonetheless. Pam Martens at Wall Street On Parade
  February 7, 2013

The Ugly

• Final installment of Yves Smith’s invaluable original research on the extensive borrower harm and orchestrated cover-up in the Bank of America foreclosure settlement. Naked Capitalism
  February 7, 2013