Edwards linked to subprime foreclosures

Presidential candidate's holdings in Fortress are invested in subprime lenders foreclosing on Katrina victims - report.


LONDON (CNNMoney.com) -- Democratic presidential contender John Edwards has investing ties to subprime lenders who are foreclosing on victims of Katrina, according to a report published Friday.

The Wall Street Journal said there are 34 homes in New Orleans that face foreclosure from the subprime unit of Fortress Investment Group. Edwards has about $16 million in Fortress (Charts), a hedge fund and private equity manager, the newspaper said.

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Democratic presidential contender John Edwards has investing ties to subprime lenders.

Edwards, the former senator from North Carolina, has been a vocal critic of subprime lenders and told the Journal that he would assist homeowners in New Orleans who face foreclosure from businesses linked to Fortress or who have already lost their homes.

"I intend to help these people," he told the newspaper. The report also said he would divest any Fortress funds in his portfolio that are invested in subprime lenders that filed the foreclosures. "I will not have my family's money invested in these firms," the Journal quoted him as saying.

Rising defaults among subprime mortgages - those home loans given to borrowers with the weakest credit records - has triggered a credit crunch and resulted in a wave of foreclosures. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.