Posts filed under “Derivatives”

So, How’d That Securitization Thing Work Out?


UPDATING: In the deep, dark recesses of my mind, I knew this chart was the result of accounting changes.  But I more or less spaced when I was going through charts at FRED and decided this was discussion-worthy even though I really did know better.  I apologize to all for the brain fart;  I’ll try not to let it happen again.

Category: Derivatives, Really, really bad calls

Secret Derivatives Trading

Courtesy of NYT > Louise Story has a front page article in the Sunday NYT that is your must read this morning: “On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan. The men share a common goal: to protect the interests of big banks…Read More

Category: Bailouts, Derivatives, Regulation

Yves Smith on Harry Shearer’s Le Show

Category: Derivatives, Legal, Video

Barron’s: Putbacks to Banks Could Be $134 Billion

During the housing boom, banks underwrote over $2 trillion in subprime, alt-A and option-adjustable rate mortgages underwriting could have losses as high as $700 billion, according to Amherst Securities research. The problem is, they weren’t particularly careful in how they performed their duties. Administrative and substantive errors, missing trust documents, misleading placement memorandums, all create…Read More

Category: Credit, Derivatives

Mortgage Origination, Assignment, and Securitization Process

I hate when I do this: I grabbed this killer chart from somewhere — it looks like a Fed research paper — then I promptly misplace the PDF. Anyway, here is a closer look at the entire loan to RMBS process: > Mortgage Origination, Assignment, and Securitization Process

Category: Credit, Derivatives, Digital Media, Real Estate

A Bailout Parable: Mad Meat

I met Eric Von Berg at an ING conference where I had just given a speech. Afterwards, he handed me a copy of this short book he wrote and illustrated: Mad Meat! How securitized lending collapsed the financial system which now exists on life-support. As the plane waited in the queue for takeoff in Atlanta,…Read More

Category: Bailouts, Derivatives, Humor

Shared Profits, Not Losses

> The MSM article of the day is a NYT takedown of JP Morgan’s raping and pillaging of various cities and pension funds. The accusation: Shared profits, client’s losses. When hedge funds do this, the private placement memorandum covers the terms. It is less clear that a brokerage firm can do this legally. This follows…Read More

Category: Derivatives, Investing, Really, really bad calls

A Financial House Advantage

via the NYT

Category: Derivatives, Video

The Impact of Error From Securitization to Foreclosure

There are quite a few misunderstandings, denials, and exaggerations floating around as to what the final outcome might be of “Fraudclosure.” At the current stage, we really do not know how extensive the problems are. We could make wild and unsubstantiated conclusions, but we prefer reason and logic. So let’s break this down as to…Read More

Category: Derivatives, Foreclosures, Legal

Why “Blank Name” Matters and Trustee Obligations

October 14, 2010 Joshua Rosner 646/652-6207 ~~~ Several new-media have quoted an early story on our October 12th note which suggested we saw risks that origination flaws would allow investors to challenge securitizations on $1.3 trillion of mortgages. This is incorrect. The story read: “potential paperwork errors on some of the $1.34 trillion of…Read More

Category: Bailouts, Credit, Derivatives, Real Estate