Shitbags

[kalm]

1) No, this is not a Matt Taibbi article.

2) This information is meant in no way to besmirch my friend AZ and other noble, hard working, and honest CU managers and bankers like him across the country.

It's clearly not fraud or illegal. I totally understand why the Obama administration had no choice but to not even look into financial crimes.

To those who still believe that the big banks are not to blame and that Wall Street is not plain and simply a casino which creates very little if nothing of value for the economy...

Morgan Stanley Bankers Sold Off 'Shitbag' CDOs With 'Nuclear' Capabilities To Clients

It's becoming depressingly familiar: Bankers joke openly in emails about a toxic investment they're creating. Bankers sell said toxic investment to clients while betting against it. Everybody loses money, nobody goes to jail. Rinse, repeat, crash the economy.

The latest round of emails was produced in a lawsuit by a Chinese bank suing Morgan Stanley over a $500 million subprime-mortgage collateralized debt obligation the bank created and marketed as "Stack 2006-1." ProPublica's Jesse Eisinger writes that documents in the case show Morgan Stanley bankers had very different ideas about what it should be called.

Those names, according to internal emails from early 2007 unearthed in the case, included "Shitbag," "Nuclear Holocaust," "Subprime Meltdown" and "Mike Tyson's Punchout."

The bankers were clearly kidding. They floated some nice names, too, before settling on "Stack." More troubling is what the rest of the documents show, according to Eisinger: Morgan Stanley was stacking its shitbags of subprime garbage high while knowing full well that the whole thing was sure to topple and make a huge mess:

People across the bank understood that the American housing market was in trouble. They took advantage of that knowledge to create and then bet against securities and then also to unload garbage investments on unsuspecting buyers.

http://www.huffingtonpost.com/2013/01/2 ... f=business" onclick="window.open(this.href);return false;

[AZGrizFan]

1) No, this is not a Matt Taibbi article.

2) This information is meant in no way to besmirch my friend AZ and other noble, hard working, and honest CU managers and bankers like him across the country.

It's clearly not fraud or illegal. I totally understand why the Obama administration had no choice but to not even look into financial crimes.

To those who still believe that the big banks are not to blame and that Wall Street is not plain and simply a casino which creates very little if nothing of value for the economy...

Morgan Stanley Bankers Sold Off 'Shitbag' CDOs With 'Nuclear' Capabilities To Clients

It's becoming depressingly familiar: Bankers joke openly in emails about a toxic investment they're creating. Bankers sell said toxic investment to clients while betting against it. Everybody loses money, nobody goes to jail. Rinse, repeat, crash the economy.

The latest round of emails was produced in a lawsuit by a Chinese bank suing Morgan Stanley over a $500 million subprime-mortgage collateralized debt obligation the bank created and marketed as "Stack 2006-1." ProPublica's Jesse Eisinger writes that documents in the case show Morgan Stanley bankers had very different ideas about what it should be called.

Those names, according to internal emails from early 2007 unearthed in the case, included "Shitbag," "Nuclear Holocaust," "Subprime Meltdown" and "Mike Tyson's Punchout."

The bankers were clearly kidding. They floated some nice names, too, before settling on "Stack." More troubling is what the rest of the documents show, according to Eisinger: Morgan Stanley was stacking its shitbags of subprime garbage high while knowing full well that the whole thing was sure to topple and make a huge mess:

People across the bank understood that the American housing market was in trouble. They took advantage of that knowledge to create and then bet against securities and then also to unload garbage investments on unsuspecting buyers.

http://www.huffingtonpost.com/2013/01/2 ... f=business" onclick="window.open(this.href);return false;

A few points of reference:

1) The "Wall Street Banks" weren't the ones WRITING the "toxic" mortgages. They were buying them, packaging them, and then slicing and dicing them into MBS traunches and selling them off.
2) When you buy a traunche of an MBS or CMO (collateralized mortgage obligation), you do so knowing FULL WELL what level of risk you're inherently taking. There is a very detailed perspectus that comes with each MBS. Many MBS's are sliced into hundreds of different traunches...higher yield = higher risk.

I have invested hundreds of millions of dollars into CMO's, MBS's and CMBS's in the past 15 years. Never ever have I purchased one that was "toxic". Then again, I wasn't ALLOWED by statute to purchase toxic assets...but those that WERE allowed got greedy, chased yield (the biggest mistake one can EVER make) and then claimed stupidity when they got caught without a chair when the music stopped.

[kalm]

1) No, this is not a Matt Taibbi article.

2) This information is meant in no way to besmirch my friend AZ and other noble, hard working, and honest CU managers and bankers like him across the country.

It's clearly not fraud or illegal. I totally understand why the Obama administration had no choice but to not even look into financial crimes.

To those who still believe that the big banks are not to blame and that Wall Street is not plain and simply a casino which creates very little if nothing of value for the economy...



http://www.huffingtonpost.com/2013/01/2 ... f=business" onclick="window.open(this.href);return false;

A few points of reference:

1) The "Wall Street Banks" weren't the ones WRITING the "toxic" mortgages. They were buying them, packaging them, and then slicing and dicing them into MBS traunches and selling them off.
2) When you buy a traunche of an MBS or CMO (collateralized mortgage obligation), you do so knowing FULL WELL what level of risk you're inherently taking. There is a very detailed perspectus that comes with each MBS. Many MBS's are sliced into hundreds of different traunches...higher yield = higher risk.

I have invested hundreds of millions of dollars into CMO's, MBS's and CMBS's in the past 15 years. Never ever have I purchased one that was "toxic". Then again, I wasn't ALLOWED by statute to purchase toxic assets...but those that WERE allowed got greedy, chased yield (the biggest mistake one can EVER make) and then claimed stupidity when they got caught without a chair when the music stopped.

Yeah, "buyer beware" is Morgan Stanley's excuse. But when other banks like the one in the article are making $500 million mistakes it seems a little more problematic. It seems like the kind of mistake that takes down global economies.

[AZGrizFan]

Yeah, "buyer beware" is Morgan Stanley's excuse. But when other banks like the one in the article are making $500 million mistakes it seems a little more problematic. It seems like the kind of mistake that takes down global economies.

Normally, maybe. But our government won't let them fail now.

[kalm]

Yeah, "buyer beware" is Morgan Stanley's excuse. But when other banks like the one in the article are making $500 million mistakes it seems a little more problematic. It seems like the kind of mistake that takes down global economies.

Normally, maybe. But our government won't let them fail now.

Totally agree. That was my point in the inauguration thread. These large banks have learned nothing about risk.

And just like there's a revolving door between Wall Street and the SEC and Treasury, there's also one in the DOJ:

Covington and Burling, the firm from which both Attorney General Eric Holder and Associate Attorney General and head of the criminal division Lanny Breuer hail, has as its current clients Goldman Sachs, Bank of America, JP Morgan, Wells Fargo, Citigroup, Deutsche Bank, ING, Morgan Stanley, UBS, and MF Global among others. Other top Justice officials have similar connections through their firms.

Eric Holder left Covington with a $2.5 million salary and a seven figure bonus. If he returns to Covington (as two of his colleagues at Justice already have) a similar payday certainly awaits him.

http://www.forbes.com/sites/realspin/20 ... or-jail/2/" onclick="window.open(this.href);return false;

Next thing you know, Chris Chrisite wins in 2016 and Ivytalk is placed in charge of the DOJ's white collar crimes unit.

[AZGrizFan]

And just like there's a revolving door between Wall Street and the SEC and Treasury, there's also one in the DOJ:

Covington and Burling, the firm from which both Attorney General Eric Holder and Associate Attorney General and head of the criminal division Lanny Breuer hail, has as its current clients Goldman Sachs, Bank of America, JP Morgan, Wells Fargo, Citigroup, Deutsche Bank, ING, Morgan Stanley, UBS, and MF Global among others. Other top Justice officials have similar connections through their firms.

Eric Holder left Covington with a $2.5 million salary and a seven figure bonus. If he returns to Covington (as two of his colleagues at Justice already have) a similar payday certainly awaits him.

http://www.forbes.com/sites/realspin/20 ... or-jail/2/" onclick="window.open(this.href);return false;

Next thing you know, Chris Chrisite wins in 2016 and Ivytalk is placed in charge of the DOJ's white collar crimes unit.

Agreed on the revolving door issue, and we should be so lucky as to have Ivytalk running ANYTHING related to the government.

[Ivytalk]

And just like there's a revolving door between Wall Street and the SEC and Treasury, there's also one in the DOJ:



http://www.forbes.com/sites/realspin/20 ... or-jail/2/" onclick="window.open(this.href);return false;

Next thing you know, Chris Chrisite wins in 2016 and Ivytalk is placed in charge of the DOJ's white collar crimes unit.

Agreed on the revolving door issue, and we should be so lucky as to have Ivytalk running ANYTHING related to the government.

Thank you! And, if appointed by President Christie, I will actually prosecute some of those mothergrabbers.

[AZGrizFan]

Agreed on the revolving door issue, and we should be so lucky as to have Ivytalk running ANYTHING related to the government.

Thank you! And, if appointed by President Christie, I will actually prosecute some of those mothergrabbers.