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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (2617)	8/15/2007 7:42:26 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

A rating scam, this is worse than Enron Worldcom Adelphia. This is even worse than Drexel. But I would not rule it out. The massive amount of issues, interested parties on both sides (wirehouses earn fees with the placements, agencies collect fees for the friendly rating) opens moral hazard and directly leads to a lack of oversight. Is there a regulatory body overseeing the rating agencies (like Moodys, Dominion, D&B, Fitch etc?).

To: The Reaper who wrote (2617)	8/16/2007 5:39:43 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 6370

Wide spread problem: >>>>>>>>>>>> BNP Paribas (FR:013110: news, chart, profile) , one of the largest banks in France, said last Thursday that it would stop valuing three asset-backed securities funds while suspending investor withdrawals. U.S. subprime-mortgage woes, the company said, led to a "complete evaporation of liquidity" -- a notable sign of how housing market troubles in the world's biggest economy are rippling across the globe. Other asset-backed securities funds from Union Investment, Frankfurt Trust and WestLB Mellon Asset Management have also been halted. In addition to the halting of those funds, there are European money-market funds -- so-called "enhanced" money-market funds -- that have investment exposure to the asset-backed securities sector. According to data compiled by Morningstar, there are more than 500 of enhanced money market funds available in Europe, though not all are invested in asset-backed securities. More than 25% have declined in value over the last month. <<<<<<<<<<<<