What exactly went on behind the scenes in Wall Street’s subprime bond factory?
A behind the scenes, inside look at three asset-backed bond deals on Wall Street, deals that eventually imploded, shows exactly the danger investors were put in.
Law enforcement officials now say arrests on Wall Street will be made not just of those who hawked predatory subprime loans, but those who pushed predatory securities built on those loans, according to Fox Business’s interviews with David Cardona, head of the criminal division at the Federal Bureau of Investigation’s New York offices as well as other top law enforcement officials at the FBI.
The FBI is investigating, from top to bottom, Wall Street executives who participated in Wall Street’s financial engineering factory, where executives compulsively minted and fraudulently pushed on investors dangerous securities built on bad mortgages, bad credit card payments, bad auto loans, bad student loans, you name it.
All stuffed through Wall Street’s underwriting pipeline, and all magically emerging as Triple-A rated securities, safe as a US Treasury.
Bonds and derivatives that were then sold by companies Wall Street purposely set up offshore in places like the Cayman Islands or Guernsey, away from the prying eyes of market regulators.