Posts belonging to Category Credit Default Swaps

Study: Structured Products Pose Huge Risks to Investors’ Portfolios


Simply stated, senior investors (in fact, all investors) should be very leery of high-risk structured products. Author John Wasik, in conjunction with Demos and The Nation Institute, has published a white paper entitled “How Safe Are Your Savings? How Complex Derivative Products Imperil Seniors’ Retirement Security.” The paper’s focus is on structured products and how […]

Is an Organization “Too Big to Fail” Above the Law?


The number one rated analyst covering brokerage firms, Brad Hintz, is telling his clients that if Goldman Sachs committed any crimes by misleading its clients about mortgage-backed securities, the firm will will be offered a “slap on the wrist” deal called “deferred prosecution” because it is viewed as “too big to fail,” according to Christine […]

Attention Investors – Beware of Structured Products


FINRA CEO Richard Ketchum recently stated that structured products are “areas of concern” for the Financial Industry Regulatory Authority (“FINRA”), according to a Bloomberg article by Jesse Hamilton and Alexis Leondis entitled “Finra’s Ketchum Says Structured Products Are ‘Areas of Concern.’” If FINRA is concerned, it better act fast. “Sales of structured products rose 46 […]

New York Attorney General’s Investigation Could be a Nightmare for Wall Street Banks


Just when Wall Street banks thought they were was going to get off scot free, New York Attorney General Eric Schneiderman is launching an investigation into the very heart of fraudulent scheme that led to the financial crisis. This has the potential to be the “Mother of All Nightmares” for the banks, according to a […]

JPMorgan Chase is Close to Settling “Built to Fail” CDO Investigation


JP Morgan says that it is in “advanced” negotiations to settle its part of a broad U.S. Securities and Exchange Commission investigation into how mortgage-linked securities were packaged and sold as the housing market unraveled, according to a Bloomberg article by Joshua Gallu and David Scheer entitled “JPMorgan Is in ‘Advanced’ Negotiations to Resolve CDO […]

Financial Services Firms Accused of Duping the Government out of $137 Billion


A California federal court has unsealed a whistleblower suit accusing AIG, Goldman Sachs, Merrill Lynch, Deutsche Bank, and Societe Generale of perpetrating a fraudulent scheme to dupe the Federal Reserve Bank of New York and the U.S. Department of the Treasury into issuing AIG more than $137 billion in bailout loans during the 2008 financial […]

If Goldman Sachs Didn’t Tell Congress The Truth, What Do You Suppose It Told Its Customers?


Senator Carl Levin, chairman of the U.S. Senate panel that investigated the causes of the financial crisis, said that federal prosecutors should consider bringing perjury charges against Goldman Sachs CEO Lloyd Blankfein and others who testified before Congress last year, according to a Bloomberg article entitled “Goldman Sachs Misled Congress After Duping Clients, Levin Says.”

Senate Report Reveals that Goldman Sachs Tried to Manipulate Mortgage-Backed Securities Market


Goldman Sachs manipulated the subprime mortgage derivative market in 2007 for its own benefit, to the disadvantage of its clients, according to a Bloomberg article by Christine Harper and Joshua Gallu entitled “Goldman Traders Tried to Manipulate Market in 2007, Report Says,” which cites a U.S. Senate report.

Wall Street Firms Were Major Culprits in the Financial Crisis


A 650-page Senate report on the causes of the financial crisis, citing internal documents and private communications of bank executives, regulators, credit ratings agencies and investors, identifies culprits whose business practices were rife with conflicts and deception, according to a New York Times article by Gretchen Morgenson and Louise Story called “Naming Culprits in the […]

Wall Street Banks Lobby to Undercut Financial Reform


Gretchen Morgenson reports that the battle for the safety and soundness of U.S. financial markets is far from won, despite the Dodd-Frank financial reform act, as Wall Street lobbies Congress to relax certain key provisions of that act in an attempt to restart the “assembly line for selling toxic waste to investors.” See “Note to […]