Via Pro Publica comes the latest tale of theft and woe of the big banks derivatives scams: Selling products to themselves, artificially creating fraudulent profits (capturing big bonuses). Whent he underlying assets drop, the derivatives become worthless — but the bonuses are already spent!
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Sources:
Welcome to CDO World!
Al Granberg, Special to ProPublica
ProPublica, August 26, 2010
http://www.propublica.org/special/cdo-world
Banks’ Self-Dealing Super-Charged Financial Crisis
Jake Bernstein and Jesse Eisinger
ProPublica, August 26, 2010
http://www.propublica.org/article/banks-self-dealing-super-charged-financial-crisis
