More News
RETAIL INVESTMENT | Cesar Tordesillas, Japan

Japan's Mizuho may face charges in 5-year-old mortgage bond deal

Mizuho Financial Group Inc. is likely to face civil charges over the sale of a US$1.6 billion mortgage bond deal five years ago.

Investors who bought pieces of the mortgage bond called Delphinus CDO 2007-1 allegedly were not told that a hedge fund was betting that some of the subprime loans and other assets bundled together in the CDO woulddecline in value, the Journal said.

Eventiually the sale led to losses for investors.

The SEC intends to file charges against firms and people involved in the creation of Delphinus, including Mizuho. Some people close to the case believed the SEC should proceed with a civil lawsuit no later than next Thursday.

For more.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.