/biz/ - Business & Finance

>>57543309
From memory, it was the rising rates that started the mess and made their mortgage repayments nulled. Then it was the lowering rates that devalued the mortgage pools and sealed the deal.

But they definitely got fucked by Goldman Sachs in particular from memory with how they were trying to transfer such pools to Lehman. There was a whole lot of fuckery with the mislabeling of pooled assets by various institutions which they sold overvalued to Lehman and several smaller firms. This lead to a drastic change in the Basel accord from memory, a change that did fuck all because I'll bet they lobbied for fuck all change. It's too much profit when you take pools of assets, overvalue them, misrepresent them, sell them overvalued, pull strings in the US gov to raise rates to make their solvency and the solvency of the mortgage pool owner collapse, then lower the rates to render the assets lower in value while beginning to make bets on the inevitable collapse of the target.

They've done this many times now. Selling "safe investments" then using legalities to get away with murder and profit from it.
Oh and I have always wondered what that "return-ship" business was for. Clearly they didn't want eyes on their data for too long at some level for "reasons".
Anyway, that corp has been going against the grain suspiciously since the well before the GFC.