As we reported last year, Magnetar helped Wall Street investment banks create at least $40 billion worth of mortgage securities deals known as collateralized debt obligations, or CDOs. The hedge fund also bet against many of those CDOs as part of an investment strategy that paid off handsomely when the housing market crashed and those CDOs collapsed. (Our story was done in collaboration with NPR's Planet Money and Chicago Public Radio's This American Life.)
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The sad part of all of this is that the big money players payed no penalty and are still doing the same things. Just fascinating.
ReplyDeleteThe shame is that the players that pushed the economy in this direction and paid no penalty are still doing it. Like the economy is their personal game.
ReplyDeleteBush deregulated banking to pre Silverado savings and loan days
ReplyDeletethis is nothing new folks its just more visible now with so many MBAs with their hands in the pot it was easy to cover up when it was just a few private banking families but as it became a career option for the upwardly mobile greed exposed the whole scam