Financial Markets
4 months ago
When Chuck Prince was CEO of Citigroup from 2003 to 2007, he didn’t know about a surge in mortgage risk that his own investment bankers loaded on to its bank’s books.
Financial Markets
4 months ago
A $1.6bn collateralized debt obligation issued by Vertical Capital LLC in March 2007 with the same name as a portion of the beach at St. Tropez, France, burned out just 228 days after it was issued.
Financial Markets
4 months ago
Oh, the poor suckers at Citigroup and Bank of America, fooled about the stench of their own garbage by those sneaky credit raters at Standard & Poor’s.
Financial Markets
4 months ago
A unit of New York Life Insurance Co. issued a $1.5bn collateralized debt obligation named after a Northern sky constellation in April 2007. The deal burst when it defaulted less than a year later.
Financial Markets
4 months ago
A Standard & Poor’s analyst in 2004 sent an e-mail to executives at the rating company’s structured- finance group. It had lost a job to Moody’s rating a mortgage- backed security because S&P criteria were more demanding, and something had to be done, the analyst allegedly wrote.
Financial Markets
4 months ago
In the government's eye, changing debt rating criteria to meet market demand is fraudulent. But that's only true if you have contempt for your customers.
Financial Markets
4 months ago
In May 2007, Standard & Poor’s confirmed its initial AAA ratings on $772m of a collateralized debt obligation known as Octonion I. Within 10 months, the Citigroup deal defaulted, costing investors and the bank almost all their money.
Financial Markets
4 months ago
Oh dear - what seemed so funny at the time.........