JamesMichael
Member Empyrean
since 11-16-1999
Posts 28086
Kapolei, Hawaii, USA
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0 posted 08-18-2009 07:15 PM
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Can You Say Over-Leveraged
"The most alarming of all the charts we studied was the one that tracked the amount of debt Wall Street had repackaged, rebranded, revalued and remarketed. We called them RMBS's, CDO's, CLO's, but they really were only DEBT"...Lawrence G. McDonald, former vice-President Lehman Brothers, from the book "Colossal Failure of Common Sense"...page 160.
Someone needs to tell the Crooks on Wall Street that when they 0VER-LEVERAGED the value of their DERIVATIVES such as CDO's (Collateralized Debt Obligations) and RMBS (Residential Mortgage Backed Securites) at times up to 44 to 1, that these are not acceptable, honest, legitimate business practices and would have been stopped by any Honest, Diligent, Competent REGULATOR.
"In the year 2006, possibly 50% of the quote in the U.S. GDP was bogus-CDO's, CMBSs, CLOs, and MBSs."..."Colossal Failure of Common Sense"...page 256.
"God knows how many additional assets were kept off the balance sheet and currently hidden away in the middle of the Caribean. Not to mention the fact that Lehman Brothers was well on the way to being leveraged to forty-four times our value-thats well north of $700 billion."..."Colossal Failure of Common Sense"...page 263.
Someone needs to tell the Crooks on Wall Street that when they were paid exhorbitant bonuses based on the over leveraging, in otherwords money that didn't exist, money that wasn't actually earned, in fact money that was owed, those bonuses were undeserved and earned fraudulently.
By the way, one of the men that could have prevented all of this by actually doing his job of Regulating and Enforcing was none other than Timothy Geithner who just so happened to be the President of the Federal Reserve Bank of New York from 2003 until 2009 and has now been appointed to be Secretary of the Treasury by President Obama.
"The Federal Reserve is a perfectly dreadful Regulator. They have allowed the buildup of RUNAWAY LEVERAGE that brought American Banks to their knees"...former SEC Chairman Arthur Levitt, from the article "The New Sheriff"...Fortune, March 16, 2009.
JamesLee
17August
2009
[This message has been edited by JamesMichael (08-19-2009 07:18 PM).]
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