Foreclosures failings could lead to 'second round of crisis'


Major US banks are heading for a "second round of major crises", says an expert on financial crime and money laundering.

Jack Blum, formerly special counsel to the Committee on Foreign Relations of the United States Senate, argues that the current issues over banks being unable to complete foreclosures on mortgages could have massive repercussions for the financial industry.

Prior to the financial crisis, millions of mortgages were bundled up by banks and sold to investors as collateralised debt

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