Welcome to CDO World!
Posted By Barry Ritholtz On August 27, 2010 @ 6:08 am In Bailouts,Derivatives | Comments Disabled
Via Pro Publica [1] comes the latest tale of theft and woe of the big banks derivatives scams: Selling products to themselves, artificially creating fraudulent profits (capturing big bonuses). Whent he underlying assets drop, the derivatives become worthless — but the bonuses are already spent!
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Sources:
Welcome to CDO World! [1]
Al Granberg, Special to ProPublica
ProPublica, August 26, 2010
http://www.propublica.org/special/cdo-world
Banks’ Self-Dealing Super-Charged Financial Crisis [7]
Jake Bernstein and Jesse Eisinger
ProPublica, August 26, 2010
http://www.propublica.org/article/banks-self-dealing-super-charged-financial-crisis
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2010/08/welcome-to-cdo-world/
URLs in this post:
[1] Pro Publica: http://www.propublica.org/special/cdo-world
[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/08/Welcome-to-CDO-World.jpg
[3] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/08/CDO-Panel-1.jpg
[4] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/08/CDO-Panel-2.jpg
[5] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/08/CDO-Panel-3.jpg
[6] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/08/CDO-Panel-4.jpg
[7] Banks’ Self-Dealing Super-Charged Financial Crisis: http://www.propublica.org/article/banks-self-dealing-super-charged-financial-crisis
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