Merrill Lynch's 'Pyxis' Deals Hid Risks At The Height Of Mortgage Boom: NYT

nytimes.com:

It was named after a faint constellation in the southern sky: Pyxis, the Mariner's Compass. But it helped to steer the mighty Merrill Lynch toward disaster.

Barely visible to any but a few inside Merrill, Pyxis was created at the height of the mortgage mania as a sink for subprime securities. Intended for one purpose and operated off the books, this entity and others like it at Merrill helped the bank obscure the outsize risks it was taking.

Read the whole story: nytimes.com

Comments

[oped1961]

12:55 PM on 08/12/2010

Can no one on the left get poster board?
You won’t get political power until you earn it. Obama and Dems listen to the Right
Put a sign on your windshield while you shop, the Right has them
Embarrassed? Own your opinion
Obama doesn't hear you, speak louder
And Move your Money!

[mariusvinchi]

06:36 AM on 08/11/2010

I've said the same thing half a dozen times since these revelations about Wall Street committing fraud came to light.
WHY ARE THESE CRIMINAL EXECUTIVES NOT BEING PROSECUTED????

[plumbergirl]

01:25 PM on 08/11/2010

Because all the politicians are paid off. I thought everyone knew that rich people and big companies didn't have to fallow the law like common folk.

[PhilipTaylor]

12:16 AM on 08/11/2010

WALL STREET ZOMBIES = HIDDEN CRIMES OFF-THE-BOOKS

Sucking HIDDEN FEES into POCKETS was the NAME OF THEIR GAME

MERRILL = PYXIS RISK SINK FOR SUB-PRIME to HIDE FRAUD!
G0LDMAN = ABACUS DEALS - “SURE FAIL” HIDDEN FROM INVESTORS = FRAUD
CITIGROUP = HID RISKS by shifting risks using same CDO TRICKS off its books

1. Visible to a CR00KED few inside Merrill
2. Created a sink for subprime securities to BE DUMPED AND HIDDEN.
3. Intended for one purpose: Operate off the books!
4. Used to Hide outsize risks they were taking.
5. Who knew what and when about these CR00KED SCAMS on Wall Street!
6. Banks HID vast exposure to dangerous mortgage investments they created.
7. After housing bubble deflated Merrill divulged the $Billions in TOXIC securities!
3rd quarter 2007, Merrill admitted to $15.2 billion, but in 4th Quarter $46 billion.
8. Merrill soon collapsed into the into the arms of BofA
9. If you believe it was all a MISCALCULATION then BUY MY BRIDGE TO MIDDLE-CLASS UTOPIA!
10. SEC knows these BANKSTERS had it all FIGURED OUT in FRAUD! Citigroup greed to pay $75 million to settle S.E.C. claims it misled investors about its CDO’s.
11. SEC Investigation throws an uncomfortable spotlight on CR00KED vast network of hedge funds and “special purpose vehicles” used to HIDE CR00KED MOVES.

[PhilipTaylor]

12:16 AM on 08/11/2010

12. D0DD CH1T REFORM did almost NOTHING to address this shadow banking CORRUPTION!
13. FEE LOADED Derivatives were the SOURCE of $100,000,000 BONUSES for Employees who could STEAL THE MOST! Sucking HIDDEN FEES into POCKETS was the NAME OF THEIR GAME
14. AIG was the BEST PART OF THE SCAM but finally QUIT in 2006 leaving BANKSTERS in NEED of another SUCKER to insure their SCAMS!
15. Tried to find a foreign bank to PLAY THE A1G SUCKER ROLE but that failed.
16. So they invented Pyxis to HIDE THEIR CRIMES - programs issuing short-term IOU’s to investors and then using that money to cover up the FRAUD!

[PhilipTaylor]

12:27 AM on 08/11/2010

It was a SHUFFLING SCAM to Hide the BEAN under the Shells - Much like a MAD0FF SCAM with a bit of Circular Round Robin SCAM! All used to HIDE THEIR FRAUDULENT MOVES!

[Aneesia]

07:42 PM on 08/10/2010

So, where are the prosecutions ?
What's the difference between a financial felon and a prosecutor ? There is no difference, it seems they both accept $$ from the same people.

[PhilipTaylor]

12:29 AM on 08/11/2010

WALL STREET gets little bitty hand slaps and then go about their FRAUD!

[FoonTheElder]

02:56 PM on 08/10/2010

Sounds similar to the fraudulent off-balance sheet deals that they provided for Enron. I guess big corporate crime pays...very well.

[LeLoup]

01:59 PM on 08/10/2010

There is so much relevant material that was not presented in this article, it is almost indecent.

For the real deal about this whole affair, take it from someone who knows what she's talking about:

http://bit.ly/cBrHGZ

Original URL is:
http://www.nakedcapitalism.com/2010/08/nyt-muffs-merrillmagnetar-piece-and-why-is-no-one-investigating-the-related-bonus-fraud.html

[MIKEBC]

01:55 PM on 08/10/2010

Breaking news, one unhappy customer just walked into Merril Lynch and lynched Merril!

[FoonTheElder]

02:55 PM on 08/10/2010

It's about time!

[NeverEndingWars]

01:36 PM on 08/10/2010

http://www.youtube.com/watch?v=3vuZMR--0x4&feature=player_embedded#!

[ms winkle]

12:25 PM on 08/10/2010

Not sure why they went to so much trouble....might as well have hid it under the mattress!
what? 3 years later and media just finding this out! has anyone been prosecuted? please