VIDEO: CreXus Investment (NYSE:CXS) to Acquire Commercial Real Estate Mortgage

CreXus Investment (NYSE:CXS) announced that it has signed a definitive asset purchase agreement with Barclays Bank’s (NYSE:BCS) affiliate, Barclays Capital Real Estate, to purchase a portfolio of commercial real estate assets. The closing of the transaction is subject to the completion of certain conditions, including the successful completion of a common stock offering by CXS and obtaining certain consents. The acquisition, which is valued at approximately $586 million, is set to be completed during mid-April 2011. The portfolio, consisting of 30 commercial real estate assets, includes commercial mortgage loans, subordinate notes and mezzanine loans. The property types underlying these assets include hotels, offices, condominium, multi-family and retail properties. Shares of CXS are down 3.86% to $12.19; Shares of BCS are up 3.15% to $19.01.

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Scandal to Cost US Mortgage Agencies USD $3B

Internal government documents have shed light on the manipulation of the global interest rate referred to as the Libor in a scandal ensnaring several large banks is now believed to have caused a USD $3 billion to mortgage finance giants Fannie Mae and Freddie Mac.

US, UK and Swiss authorities have alleged a vast conspiracy led by UBS to rig interest rates tied to trillions of dollars in loans and other financial products. US prosecutors also announced Wednesday that the Swiss banking giant had agreed to pay USD $1.5 billion in fines for manipulating the rate. U.S. authorities also filed criminal charges against two UBS employees, the first individuals targeted by the widening investigation.

The London Interbank Offered Rate, or Libor as the interest rate is known, has the purpose of defining the rate that banks use to lend to each other and it is also used as a benchmark for other interest rates around the world. The Commodity Futures Trading Commission has found evidence showing that rate manipulation may date back as as far back as 2005.

The more than USD $! Trillion in interest-rate swaps, floating rate bonds, mortgage-backed secutiries and other assets and financial products held by Fannie Mae and Freddie Mac that are linked to the Libor would like have caused the loss of billions of dollars between 2008 and 2010 according to government memos obtained by the Washington Post Wednesday.

The inspector general recommended that the Federal Housing Finance Agency conduct a review and consider civil remedies against the banks involved in the scandal.

Despite a FHFA spokeswoman saying the regulator “has not substantiated any particular Libor-related losses for Fannie Mae and Freddie Mac,” she said the agency is considering the inspector general’s findings and will “continue to evaluate issues associated with Libor.”

Barclays was the first bank to admit wrongdoing in the scheme and is now joined by UBS in the rate-fixing scheme. Sixteen other banks including the likes of Bank of America, Citigroup, HSBC and JP Morgan Chase who also affect the daily rate of the Libor through data submissions are also mired in the scandal.

Stock Price Performance: (30-Day) Between November 19, 2012 and December 19, 2012, Fannie Mae (BE:FNM) stock price increased EU 0.012 (+5.76%) EU 0.208 to 0.22. Freddie Mac (BE:FHL) stock price increased EU 0.011 (+5.26%) EU 0.209 to 0.22. UBS N (VX:UBSN) stock price increased CHF 0.80 (+5.53%) CHF 14.45 to 15.25.