'SEC Probes Major Lender Over Mortgage-Backed Securities Sold To Wall Street; The Change Company Facing Scrutiny Over Securities Products; Firm Says It's Unaware Of SEC Investigation; Denies Wrongdoing' - Bloomberg News
Portfolio Pulse from Happy Mohamed
The US Securities and Exchange Commission (SEC) is investigating The Change Company, a California-based lender, over its mortgage-backed securities. The regulator is also probing actions of the company's CEO, Steven Sugarman. The Change Company's loans have been backed by some of Wall Street's largest money managers.
August 28, 2023 | 3:19 pm
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The Change Company's mortgage-backed securities, which are under SEC investigation, have been backed by some of Wall Street's largest money managers. This could potentially impact the SPY ETF, which tracks the S&P 500 and includes many of these money managers.
The SEC's investigation into The Change Company could potentially lead to a decrease in the value of its mortgage-backed securities. This could impact the portfolios of the Wall Street money managers who have backed these securities. As these money managers are part of the S&P 500, which the SPY ETF tracks, this could potentially lead to a decrease in the value of the SPY ETF.
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