Wall Street Firms Under Fire For Aiding Subprime Loan Crisis

New York Times:

As the subprime loan crisis deepens, Wall Street firms are increasingly coming under scrutiny for their role in selling risky mortgage-related securities to investors.

Many of the home loans tied to these investments quickly defaulted, resulting in billions of dollars of losses for investors. At the same time, many of the companies that sold these securities, concerned about a looming meltdown in the housing market, protected themselves from losses.

One big bank that saw the trouble coming, Goldman Sachs, began reducing its inventory of mortgages and mortgage securities late last year. Even so, Goldman went on to package and sell more than $6 billion of new securities backed by subprime mortgages during the first nine months of this year.

Read the whole story: New York Times

Comments

[realitytrumpsbull]

Well it's too early for the centennial of '29...

[Justinpassing]

Let’s Get It Started In Here

"The Market" has become the laughing stock of stocks...... you could not write a more prescient script than what is taking place.... and as the old saying goes, "YOU AIN'T SEEN NOTHIN' YET! HELL, WE'RE JUST GETTIN' STARTED"
Notice how the market is on a tare? Running up like there is gold nuggets lying all over the ground just waiting to be picked up? Running up as though the fundamental are as sound and secure as all the gold in Fort Knox? Well it will be just that way for a while. “How long”, you ask? Long enough to suck in every Tom, Dick and Harry from here to Poughkeepsie. And then, one day when you least suspect it WHAAMMOO, market drops 20% like a petrified elephant turd and BINGO, the establishment just walked away with a cool 50 billion dollars of Tom, Dick and Harry's greed gone wild. But hey, Tom & friends, think of it as though you've done your patriotic duty, by helping Uncle Sam bale himself out of the econometric-fiscal-farce he fell into. He’ll be ever so glad you dropped in.

[fourex]

Is Jim Cramer making another exception for federal interference in the markets? Jim, your exceptions are obliterating the free market rules. When will you stop?

[wm1066]

Wall street is shaking in thier boots!... just what will congress do to then?... NOTHING!

[nomoredead]

warongreed.org

[godlessclif]

They made the crisis worse, but what about what is really important. Did they make money doing it?

On Wall Street if you say there is a drug epidemic
people ask "What is the stock symbol of the company that makes the needles?"

[nomoredead]

This is a major new story that is coming to light. I hope it doesn't get covered up. What does it say about our financial institutions if they sold this garbage to foreign countries.

[nomoredead]

And these guys where going to take care of our Social Security if bush had his way. Jesus.

[letsgetsmart]

Yeah but hey middle and lower classes they are your friends. You should invest in wall street so they can take your money as well as your house.

[themodernleader]

The swindlers and their regulatory sponsors should be indicted for fraud and other crimes against our Republic and placed on trial. Any investigation should explore the decision making process, the players and how this swindle was hatched and implemented.
Our Country has lost its entire credibility for credibility and honesty of its leadership--government and business. Our bereft citizens will pay dearly for their negligence, corruption and incompetence.