Week 1 - that were not supposed to be packaged. Investors...

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Jamie Riedford BTE 234 November 3, 2010 Wall Street and Mortgages In The New York Times article “How Wall Street Hid Its Mortgage Mess,” William D. Cohan discusses our economic meltdown and how Wall Street continued to hide and cheat mortgages. He explains how one mortgage after another was packaged into mortgage-backed securities by Wall Street and sold to investors in various places all over the world. The banks hired Clayton Holdings, a firm that reviews loan files on behalf of investment banks, and they gave Wall Street thousands of mortgages to package into these securities being demanded by investors. Although only 54% met the guidelines for this packaging, Wall Street cheated investors by including mortgages in their products
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Unformatted text preview: that were not supposed to be packaged. Investors received the short straw on these deals because they were not aware of these shaky mortgage products; Wall Street failed to mention any information concerning the validity of these loans. This situation is still being evaluating, and so far not a single person on Wall Street has been found to be criminally liable for the scandal that led to the financial crisis. The Financial Crisis Inquiry Commission is continuing to investigate this situation, hoping to get to the bottom of this crisis and the events leading to it, along with penalizing those who contributed....
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This note was uploaded on 02/02/2012 for the course BTE 234 taught by Professor Alanshort during the Fall '10 term at Miami University.

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