The banks they sold them to. And yes, the hedge funds. They misrepresented these products. The learnt that the ratings agencies had made a mess of the rating

The banks they sold them to. And yes, the hedge funds. They misrepresented these products. The learnt that the ratings agencies had made a mess of the rating too late, they were on the books. So they sold them as fast as they could, lying to the customers. It does not matter if the customer was a hedge fund, a bank, or you. Lying about financial products is a crime.