President Barack Obama: You can't continue to pay yourselves billions, after nearly destroying the economy... Banker: No bonus for him. And therefore he must not be any good.
wminfeld. but no one forced banks to parse up those loans into incomprehensible derivatives, craeting $30 bucks of debt for every $1 of mortgage. That’s what did them in. And they were helped by the rating agencies who gave these sliced and diced derivatives the highest rating possible, even the ones based on questionable loans. No one forced the mortgage loan industry to falsify documents, forego income verification and write up big loans that paid them higher commissions, then sell the loans, having no blowback from their falsified data. Bear Stearns got caught with e-mails between hedge fund managers warning that 50 percent of bonds they were selling for one year (2006 as I recall) were based on loans with no income verification. The partners protected their own personal funds by withdrawing but kept selling the bonds as high yield. Lots of blame to go around for meltdown. Greed trumped common sense and then some.
wminfeld. but no one forced banks to parse up those loans into incomprehensible derivatives, craeting $30 bucks of debt for every $1 of mortgage. That’s what did them in. And they were helped by the rating agencies who gave these sliced and diced derivatives the highest rating possible, even the ones based on questionable loans. No one forced the mortgage loan industry to falsify documents, forego income verification and write up big loans that paid them higher commissions, then sell the loans, having no blowback from their falsified data. Bear Stearns got caught with e-mails between hedge fund managers warning that 50 percent of bonds they were selling for one year (2006 as I recall) were based on loans with no income verification. The partners protected their own personal funds by withdrawing but kept selling the bonds as high yield. Lots of blame to go around for meltdown. Greed trumped common sense and then some.