Team Hedge Fund

““The incentive was perverse,” said Michael Lea, a finance professor at San Diego State University and former chief economist at mortgage giant Freddie Mac. “The fee structure encouraged TCW to put lower-rated bonds into CDOs over time.””
Go to Source

Related posts:

1. Which CDOs and Banks Had Deals With the Most Cross-ownership?
2. Bloomberg Takes a First Step at Piercing the Veil of Secrecy Surrounding CDOs
3. Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs
4. US Banks to Lose or Write Down $470 billion Thru 2010
5. How Goldman Sachs Leveraged $70 Billion in Government Money For Record Profits