Wednesday, Aug 15, 2007

How the US Subprime fiasco came about

FT: Ratings agencies reap more of what they sowed

Amazing practices! "In 2000 ratings agencies said that “a type of mortgage that involves a ‘piggyback’, where borrowers simultaneously take out a second loan for the down payment, was no more likely to default than a standard mortgage,”

Posted by leoz @ 05:58 PM (147 views) Add Comment

1 Comment

1. Alan said...

It's a simple case of pocketing the fee and not servicing the engine.

You can only get away with it while the market is calm. This one isn't.

Wednesday, August 15, 2007 09:46PM Report Comment
 

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