Goldman Sachs Group Inc. will not face criminal prosecution tied to sales of mortgage-linked securities as such a move could threaten the U.S. financial system, according to Brad Hintz, an analyst at Sanford C. Bernstein & Co.

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Emigrant offers art- and antique-related services that most banks do not. "It's not cost-effective for many of the big banks to invest in the expertise and infrastructure to offer art advisory services or to underwrite loans," says Andy Augenblick, the president of Emigrant Bank Fine Art Finance.

The Citigroup mortgage unit is not the first lender to be tripped up by California law requiring the interest payments on escrow impound accounts.

The Tulsa, Okla., bank is adding Jim Thompson as director of senior housing investments.

The Federal Housing Finance Agency has appeared willing to take its own steps to reform Fannie Mae and Freddie Mac, but legislation would be necessary to create an explicit guarantee of the mortgage system.

Investors are learning the hard way, again, that highflying new financial products, with little or no regulatory oversight, tend to crash.

The National Credit Union Administration can no longer examine third-party vendors and service providers. That leaves the industry vulnerable to cybercriminals and other bad actors.

The FHFA should focus on the facts as it ponders the future of the Federal Home Loan Bank System.