Wachovia, like Washington Mutual Inc., which was seized by the federal government last week, was a big originator of option adjustable-rate mortgages, which offer very low introductory payments and let borrowers defer some interest.

Aug. 8 (Bloomberg) -- Royal Bank of Scotland Group Plc reduced assets by about $208 billion in its investment bank this year because the company got ``too big'' and reported the first loss since going public 40 years ago.

WASHINGTON — The U.S. government this year has placed on its books the liabilities of a major investment bank in March, two mortgage-finance giants earlier this month, and this week, the nation's largest insurer. The world of free-market finance as we

How Moody?s and other credit-rating agencies licensed the abuses that created the housing bubble and bust.

Last year, the City of Duluth invested 3 million dollars in Mainsail-a commercial paper asset. At the time it was thought to be a very safe investment...then the bottom fell out. Joel Runck has the details.