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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (283635)	10/15/2010 9:58:54 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>>On Monday, Eliot Spitzer, the former New York governor turned talk-show host, called the inquiry commission’s revelations “fraud, plain and simple,” and said there is “a basis without any question for the most rigorous examination” of why Wall Street failed to disclose this valuable information to investors. << That's more or less what I said, word-for-word. And Spitzer IS a lawyer, he didn't have to stay at a Holiday Inn Express last night! When are the RICO indictments coming down? I'm not holding my breath, but when all 50 state AG's are signed up this has potential to get very interesting.

To: bentway who wrote (283635)	10/15/2010 5:33:25 PM
From: John McCarthy	Respond to of 306849

So, did Wall Street throw all those mortgages back into the pond as being too risky for securities they were going to sell to clients? Of course not — many were packaged right into their product. There were degrees of nefariousness: Some Wall Street firms were better about including higher-quality mortgages in their mortgage-backed securities than others. For instance, at Goldman Sachs, 77 percent of the nearly 112,000 mortgages reviewed met the guidelines, while at Citigroup only 58 percent did. At Lehman Brothers, which later filed for bankruptcy, 74 percent of the mortgages sampled and then packaged up as securities met underwriting guidelines. OKAY - so how did S&P and Moody's bless these land mines as AAA.? Did they have the same paperwork?