CDO - Dear Mr. Berko: Two years ago, I bought $150,000 in...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Dear Mr. Berko: Two years ago, I bought $150,000 in Collateralized Debt Obligations and $46,000 in Freddie Mac and Fannie Mae preferred stock. My broker told me they were AAA rated and you know the rest; everything went down the tubes. I'm going to sue my broker. Can I do it without a lawyer to whom I'd have to pay 40 percent of what I get? Please answer ASAP. Can you tell me why this CMO/CDO thing is so complicated and explain it without using complicated terminology? I need to understand this better if I sue by myself. — S.N., Walton Beach, Fla. Dear S.N.: Ouch! Holy cow, great Caesar and jumpin' Jehosephats! It's a small wonder that the king's men couldn't put Humpty Dumpty back together, that Miss Bo Peep lost her sheep and Brer Fox wanted to eliminate Brer Rabbit. No one seems to know who or what's going on in this financial tumult. Please do not blame that broker for your $150,000 loss in Collateralized Debt and the $46,000 loss in Fannie Mae and Freddy Mac preferred shares. Those CDOs were AAA rated by Moody's and Standard & Poor's even as they were
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
sinking so deeply into financial quick sand that neither Superman nor Popeye could pull them out. Your broker trusted the Triple A ratings from Moody's, Standard & Poor's and Fitch, who competed against one another for the lucrative business of rating securities. These agencies bribed
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/16/2011 for the course MGMT 301 taught by Professor Hisham during the Spring '11 term at McMaster University.

Page1 / 6

CDO - Dear Mr. Berko: Two years ago, I bought $150,000 in...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online