Quote from asiaprop:
let me assure you that you are wrong. Please do check if you do not believe me. IBs did extensively discuss the mechanics of the structures with rating agencies. It was, however, ultimately the job of the rating agencies to run their own models to arrive at the rating they were giving. Quite the opposite actually, often times rating agencies supplied IBs with their models in order for the banks to comprehend the rational behind the final rating. This was necessary in order to arrive at the intended rating and if opinions and models differed then negotiations about a modification in the amounts and types of credit enhancements took place.
I don't believe you because I discussed with matter with someone who actually worked on the matter in question. I think it's normal to lend more credence to that person rather than an arrogant full-of-shit asshole on Elitetrader. Or do you think you have more expertise on the matter rather than the person who actually does it for a living?
You need to blame the rating agencies if they did not do their job properly. You are incorrectly shifting blame.
I'm not playing the blame game, I am stating matters as they are. The bottom line is that those on the inside of the racket, whether at the ratings agency or the Investment Banks all knew it was a racket which involved misleading the suckers and "making mistakes". It was all about fat fees & fat bonuses, for both of the parties. Kinda common sense, when you take Goldman Sach's nuts out of your mouth.
And as I have said several times before, I do not really care if they want to play these schemes. It's only when the bailouts started that it became a problem for me and the general public.
By the way your arrogance is quite misplaced, your post makes the false assumptions that complicated structures can only be understood by those who work in NYC? LOL!!!
P.S: I did live and work in NYC, I do have close friends who worked on several option ARMS desks of some of the large houses and I myself modeled CDOs before. Maybe you want to be careful with your quick assumptions about others' basis for judgment.
Being here in NYC (also London) and in the industry simply allows for more exposure on the matter from those actually involved. It's just a bit more interesting to hear what was going on in these places, instead of relying on biased journalists appeasing the Wall Street banks with long winded explanations.
You've been called out on this topic before and you always avoided it. Now all of the sudden you're gonna claim that you have actual experience with CDOs and have worked in NYC I-banking or trading desk? Right, very believable. Stop kidding yourself, anyone who acts like you does not get into a bulge bracket firm, let alone last long there.
I should be careful with my assumptions? Is that some sort of a thin veiled threat?
You're a little punk wanna-be and I have said it before. You like to call others derogatory names because they don't agree with your over the top biased rhetoric. You consistently make demeaning statements on the ET community, as if to make yourself feel better about yourself.
Since you act like such a big shot, take a visit to NYC, stay with your supposed close friends and take some time to meet me in person and say some of the crap you like to post to my face. Frankly, I doubt you can afford the ticket to get here from whatever sh*thole you're currently staying at.
