YellowLinesandArmadillos Posted January 13, 2010 Share Posted January 13, 2010 Being questioned during the hearing that these guys have months to prepare for, the Goldman Sachs rep and others can't recall when they first became aware of the default swap crisis, the sub-prime mess and are flat out lying when they say they were never leveraged at more than in the 20 percent range. I have a friend who was laid off and a manager of one this groups and he explained that these guys were aware that they had much more leverage than thought, didn't do their own due diligence and figure out how much it actually was and it wasn't just on sub-prime, it was on all bank loans. And looking back they realized it was a lot more than 20%, but because of the complicated loan packaging and reselling with high level rating it was tough to tell exactly what level leverage they were at. Now, any kind of regulatory structure or oversight on these issues are being opposed by these same banks and fund managers who looked the other way and brought use into the crisis to begin with. Man Wall Street is FOS. P.S. Watching it on MSNBC Financial network now... Don't see it listed on any Gov. Sites, Could be a repeat?? Link to comment Share on other sites More sharing options...
Magox Posted January 13, 2010 Share Posted January 13, 2010 Being questioned during the hearing that these guys have months to prepare for, the Goldman Sachs rep and others can't recall when they first became aware of the default swap crisis, the sub-prime mess and are flat out lying when they say they were never leveraged at more than in the 20 percent range. I have a friend who was laid off and a manager of one this groups and he explained that these guys were aware that they had much more leverage than thought, didn't do their own due diligence and figure out how much it actually was and it wasn't just on sub-prime, it was on all bank loans. And looking back they realized it was a lot more than 20%, but because of the complicated loan packaging and reselling with high level rating it was tough to tell exactly what level leverage they were at. Now, any kind of regulatory structure or oversight on these issues are being opposed by these same banks and fund managers who looked the other way and brought use into the crisis to begin with. Man Wall Street is FOS. P.S. Watching it on MSNBC Financial network now... Don't see it listed on any Gov. Sites, Could be a repeat?? It's called the blame game, and there is truth to both sides. The W.H and Congress say it's because of the casino like mentality on the leveraging aspects of their business, and the banks say that the crisis was due to overly dovish interest rate policies coupled with government pressure on the GSE's to loan more than they should of. Guess what? They are both right. The good news is that the banks are risking more than ever, and Fannie and Freddy are stepping up their lending efforts, so everything is back to business as usual. Nothing to fear Link to comment Share on other sites More sharing options...
KD in CA Posted January 13, 2010 Share Posted January 13, 2010 The good news is that the banks are risking more than ever, and Fannie and Freddy are stepping up their lending efforts, so everything is back to business as usual. Nothing to fear And my 401k is kicking ass lately! Let the good times roll!! Link to comment Share on other sites More sharing options...
Magox Posted January 13, 2010 Share Posted January 13, 2010 And my 401k is kicking ass lately! Let the good times roll!! Yup! Nothing to fear Link to comment Share on other sites More sharing options...
keepthefaith Posted January 13, 2010 Share Posted January 13, 2010 And my 401k is kicking ass lately! Let the good times roll!! 6 months is not a trend. Link to comment Share on other sites More sharing options...
DC Tom Posted January 13, 2010 Share Posted January 13, 2010 6 months is not a trend. Yes it is. Specifically, it's a six-month trend. Link to comment Share on other sites More sharing options...
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