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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: H James Morris who wrote (9773)	11/24/2002 11:51:28 AM
From: westpacific	Read Replies (2) \| Respond to of 89467

DID everyone read and pass this along!!! IMPORTANT!! From Doug Nolands latest rambles, make sure everyone gets this blasted all over the internet. IT IS TIME FOR US ALL TO FIGHT< TO ALERT THE PUBLIC TO THIS FRAUD OF A MARKET!!!! --------- November 18 – Bloomberg: Comments from David Coles, a managing director at restructuring firm Alvarez & Marsal, appointed chief executive at National Century Financial Enterprises Inc.: “It’s all very unfortunate. We had, inadvertently, become the sole source of financing for many of the providers. We were supposed to be a receivables financing operation, but we were lending against equipment, future receivables, pro forma receivables, and providing advances that weren’t secured. I imagine that some of the providers will have difficulty obtaining collateral financing quickly enough to avoid bankruptcy proceedings… The scale of the deficits are quite staggering, about $500 million to $700 million in NPF VI and $1.5 billion to $2 billion in NPF XII, which has been a shock to many people… An average of about $30 million a day was coming into NPF XII in mid October. That has dribbled to about a million.” November 19 - Bloomberg: “ING Bank NV, which is part of the biggest Dutch financial-services company, has helped fund $500 million of debt for National Century Financial Inc., a health-care financing company… ING’s commitment is through an asset-backed commercial paper program that it administers, Dow Jones said, citing Jay Eisbruck, a managing director at Moody’s Investors service… Credit Suisse First Boston funded a similar program for $225 million, Dow Jones said. Under such programs, banks package a variety of debt products into an off-balance sheet securitization which funds itself by selling commercial bonds…” There is now no doubt that National Century Financial was an outright fraud involved in misappropriating funds, self-dealing, and fraudulent accounting on a massive scale. Asset-backed securities that were top-rated until recently are destined to suffer heavy losses. Cash-flow into ABS “lockboxes” has slowed to a trickle. One health care official was quoted by USAToday: “Millions are missing. It’s a health care Enron. Health care providers from sea to shining sea are involved in this thing.” But unlike Enron, there were no opaque off-shore vehicles, arcane derivative trading, sophisticated financial engineering or complex accounting. And that’s what troubles us the most. Two JPMorgan Chase bankers were on National Century’s board (one ran the audit committee!) and Morgan was trustee on one of the company’s main funding vehicles. Bank One was trustee on the other. CSFirstBoston was National Century’s investment banker and Moody’s was there to confer its top-rating to NCFE’s asset-backed securities. Deloitte Touche had been certifying the company’s accounting statements. Like Enron and too many other situations, we are troubled that our major financial institutions are all too comfortably partners in “business” with crooks – rather conspicuous ones at that.