Banks Bundled Bad Debt, Bet Against It and Won
http://www.nytimes.com/2009/12/24/business/24trading.html?_r=1&em=&pagewanted=all“The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” said Sylvain R. Raynes, an expert in structured finance at R & R Consulting in New York. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson.”
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