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BANKS HIRE AGGRESSIVELY TO REBUILD THEIR MBS OPERATIONS

Investment banks are once again hiring bankers to sell and trade mortgage-backed securities, the packages of loans that were at the heart of the financial crisis, reflecting a belief that the worst is over in the US housing market.

Foreign banks have been particularly aggressive in hiring salesmen and traders of mortgage-backed securities to better compete with American rivals.

UBS and Nomura, two banks that pulled out of the mortgage- backed securities market after suffering losses during the financial meltdown, have started to reassemble their US-based mortgage desks. Royal Bank of Scotland and BNP Paribas also are adding a significant number of employees to their mortgage teams.

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