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S&P Analyst: CDOs Are ‘Burning Down the House’

Posted By Barry Ritholtz On February 5, 2013 @ 7:21 pm In Derivatives,Legal,Real Estate | Comments Disabled

Is it possible that the Credit analysts who rated subprime junk as AAA at S&P are even more odious, more corrupt, more execrable than I previously imagined?

As this email from the government’s complaint (via Dealbook [1]) shows us, yes!

 

[S&P analyst]: With apologies to David Byrne…here’s my version of “Burning Down the House“.

Watch out
Housing market went softer
Cooling down
Strong market is now much weaker
Subprime is boi-ling o-ver
Bringing down the house

Hold tight
CDO biz — has a bother
Hold tight
Leveraged CDOs they were after
Going — all the way down, with
Subprime mortgages

Own it
Hey you need a downgrade now
Free-mont
Huge delinquencies hit it now
Two-thousand-and-six-vintage
Bringing down the house.

 

video after the jump

 

 

Hat tip Jonathan Miller [2]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/02/sp-analyst-cdos-are-burning-down-the-house/

URLs in this post:

[1] Dealbook: http://dealbook.nytimes.com/2013/02/05/the-things-credit-rating-analysts-say/

[2] Jonathan Miller: http://www.millersamuel.com/blog/talking-heads-burning-down-the-house-sp-style/28263

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