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Scunnered

Securitisation Is Back

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From the Guardian: Securitisation marks renewed City confidence

A sign that the City is returning to pre-credit crunch levels of confidence came when it emerged that banks were again using the controversial practice of securitisation.

After recent reports about the return of large bonuses in the Square Mile, news that Barclays Capital and Goldman Sachs were using the technique to clean up their debt-loaded balance sheets will confirm the view of critics who say the City has not been reformed sufficiently.

[continues...]

Yay! I'm really beginning to admire Goldman Sachs.

Edited by Scunnered

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Is this the only way banks can do business. . . badly ?

Nothing wrong with securitisation really. The problem was with the buyers not doing due dilligence and paying AAA prices for junk.

They deserved to fail, and from now on any institution deemed too big to fail, is too big.

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The alternative is a return to the lending monopoly of the high street banks.

Done properly this time, fingers crossed.

Good luck in finding buyers. Only a braindead moron would buy into securitisation now. Oh wait, that will mean Wall Street will snap it up.

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Nothing wrong with securitisation really. The problem was with the buyers not doing due dilligence and paying AAA prices for junk.

Please don't spoil the soggy biscuit frenzy taking placve on here

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Nothing wrong with securitisation really. The problem was with the buyers not doing due dilligence and paying AAA prices for junk.

They deserved to fail, and from now on any institution deemed too big to fail, is too big.

With mark to market, you just have smaller dominos closer together surely?

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