Man Who Promoted Toxic Investments Poised To Redeem Himself

Man Who Promoted Toxic Investments Poised To Redeem Himself

But before anyone organizes a ticker-tape parade for Fink, keep in mind that 25 years ago he was an early and vigorous promoter of the CMO (collateralized mortgage obligation). Today the CMO and other asset-backed securities have become the monsters responsible for the credit crisis.

...

So the question is, Can Fink stop this monster - and make a profit along the way?

To understand how BlackRock found itself at the center of the financial crisis, you need to understand Larry Fink's long, strange relationship with mortgage-backed securities. Fink sold his first CMO in 1983 while working as a bond trader at First Boston. He pitched this new product to Freddie Mac (FRE, Fortune 500) as a way for the company to offload $1 billion in mortgages.

Popular in the Community

Close

What's Hot