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To: Perspective who wrote (61526)	12/13/2002 12:28:32 PM
From: NOW	Respond to of 209892

Thanks BC! As for the regulators, well I dont know whether to laugh or cry at that....seems to me if the debt securitzation scam folds, the whole shebang folds....

To: Perspective who wrote (61526)	12/13/2002 2:55:22 PM
From: patron_anejo_por_favor	Respond to of 209892

<<I think our best hope is the regulators. Big question is whether they're on the take as well>> Won't happen. As you've astutely noted before, MBI inhabits a regulatory blind spot. One fine day they'll be carried out on their shields, taking the entire structured finance bubble down with them, IMO.

To: Perspective who wrote (61526)	12/13/2002 3:09:07 PM
From: reaper	Read Replies (1) \| Respond to of 209892

bobcor -- i think its too late for the regulators here. one thing the regulators are acutely aware of at this point is that they can, and often do, PRECIPITATE a 'run on the bank'. for example, as much as folks like S&P and Moody's were critisized for not exposing the Enron (and other) mess(es), they have also been critisized for making them worse; the 'i would have been just fine if you hadn't downgraded me and caused the liquidity crisis' argument. IF the regulators / S&P did in fact see a problem with MBI, i really don't think they can call them on it without their call becoming a self-fullfilling prophesy (i.e. the day MBI gets downgraded the whole thing comes unwound). so the regulators / rating agencies will LAG, not LEAD. frankly, better to be blamed for MISSING a problem than to be blamed for CAUSING it. Cheers