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Banks are huge, with different divisions. People who spout these types of lines don't actually understand how it works. Plus, there is the whole due diligence a
by qeternity 10y ago
Banks are huge, with different divisions. People who spout these types of lines don't actually understand how it works. Plus, there is the whole due diligence aspect. You can't blame anyone else. Also anytime anyone sells you something, they are telling you they think it's worth less than you do. Yet everyone is fine with that in every other industry.
Source: hedge fund trader who fights banks all the time, but doesn't agree with their scapegoating.
- cm2187 10y agoThe Viniar explanation is actually quite good (not the "unfortunate to have on email" bit, the 20cent in the dollar bit): https://www.youtube.com/watch?v=ccjZEvBGOuk https://www.youtube.com/watch?v=ccjZEvBGOuk And to be fair to GS (not that it is the widow and the orphan), the "shitty deal" wasn't a reference to the collateral of the CDO, but to the fact that they didn't manage to sell a position on that transaction.