Barclays to Discontinue Trading In Non-Agency U.S. Mortgage-Backed Securities

Barclays has decided to pull out of the $700-billion non-agency U.S. mortgage trading industry in a bid to fall in line with stricter rules imposed by U.K.’s financial regulators. While U.S. regulations allow banks to ignore the credit rating of mortgage bonds while calculating their capital ratios, British regulators require U.K.-based banks to set aside more capital to cover junk-rated mortgage bonds.   Read more here