Category Archives: CDOs

The Busted Homes Behind a Big Bet

Download 2010-4-22 Underlying Goldman Deal, a Different Set of Risk-Takers – WSJ.com The government's civil-fraud allegation against Goldman Sachs Group Inc. centers on a deal the firm crafted so that hedge-fund king John Paulson could bet on a collapse in U.S. housing … Continue reading

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Ties to Abacus Deal Cost Bankers $840 Million – NYTimes.com

That decision set off a chain of events that left the Royal Bank of Scotland Group — to many Britons, a symbol of the excesses that brought the financial world to its knees — as the biggest loser in the … Continue reading

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Senate Panel to Release Documents in Inquiry of Ratings Agencies – NYTimes.com

WASHINGTON — As the housing market began to falter in 2006 and the risks embedded in Wall Street’s giant collective bet on subprime mortgages became apparent, a sense of omen filled the corridors of Standard & Poor’s and Moody’s Investors … Continue reading

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Questions for Banks That Put Together Complex Deals – NYTimes.com

But now, after so much financial pain, Wall Street is nervously tallying the potential legal costs from its misadventures in collateralized debt obligations, known as C.D.O.’s, among the most toxic financial instruments ever devised. via www.nytimes.com Notice the tone in … Continue reading

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Investor Who Made Billions Not Targeted in Goldman Suit – NYTimes.com

Related S.E.C. Accuses Goldman of Fraud in Housing Deal (April 17, 2010) Talking Business: A Wall Street Invention Let the Crisis Mutate (April 17, 2010) DealBook: Bove: Time to Clean House at Goldman (April 16, 2010) DealBook: S.E.C. Inquiry May … Continue reading

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Harvard Senior Explains CDO Meltdown

Download 2010-3-16 This Thesis Got An 'A' in CDOs – WSJ.com Download 2009-3-19 Harvard The Story of the CDO Market Meltdown Buried in the acknowledgments of the just released "The Big Short," Michael Lewis's yarn about the financial crisis, the … Continue reading

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Excellent Radio Piece on Toxic Assets

NPR: We Bought A Toxic Asset; You Can Watch It Die Toxic assets — home mortgages packaged into complicated bonds that no one wanted to touch when the housing bubble collapsed — are starting to trade again. Planet Money wanted to … Continue reading

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Goldman Gets More Grief, Part II

NYT: Banks Bundled Bad Debt, Bet Against It and Won One focus of the inquiry is whether the firms creating the securities purposely helped to select especially risky mortgage-linked assets that would be most likely to crater, setting their clients … Continue reading

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Flaunting Contract Law on MBSs

Download 2009-10-14 Treasury's Mortgage Modifications Undermine Contracts – WSJ.com The $1.7 trillion mortgage securitization market is still a mess, despite (or in part because of) the Federal Reserve's $700 billion splurge into the market. But another reason may be Treasury's … Continue reading

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