3 ms·

I don't understand how it is legal to sell the securities bundled without also having to reveal the specs/details of each individual loan?

• kasey_junk 11y ago
  The specs/details were available. No one in the process was incentivized to look into it though (except for the folks who were shorting these CDOs, who did and made a bundle). The sellers were obviously trying to offload them, the buyers were happy to be told they were no risk securities and the ratings agencies' customers were the sellers. That the ratings agencies still exist after that meltdown is the single biggest mind blowing thing that happened after the crisis in my mind.
  • rorykoehler 11y ago
    That is pretty unbelievable. Definitely puts a different spin on it. Caveat emptor I guess. I find it unlikely that what happened wasn't at least partially orchestrated.
    • Abraln 11y ago
      Never attribute to malice that which can be adequately explained by stupidity. A few lazy/greedy people in the wrong place who don't think long term can do a lot of unintentional damage.
      • rorykoehler 11y ago
        It isn't what happened that makes me think this rather what happened after.