Note that this will not be easy: I read last week that some (smart shark) hedge funds have shorted the bank stocks, purchased CDS from them without the underlyings (nothing prevents you from doing that, effectively betting on ACME going belly up), and sometimes even shorted the MBS when markets allowed. These hedge funds have officially demanded that the SEC applies regulation swifly and strictly to the big street names (in short: they will not let their preys escape). So there is big money pushing for a crash too, and lobbying power on both sides. Pierre
In other words, fredoiul cannot profit from this any longer, as people with deeper pockets than him and earlier access to information already have ;-) Can the last politician to go out the revolving door please turn the lights off?
FSA sounds alarm on subprime lending (4 July) The Financial Services Authority has started disciplinary action against five mortgage brokers for weak "responsible lending" practices in the subprime mortgage market. The UK financial regulator on Wednesday issued a damning report on the sector, which lends to borrowers with spotty credit histories. Arrears among subprime borrowers are currently running at 20 times those of mainstream mortgage holders, sparking concerns firms have taken on excessive risk in ramping up their lending in this area.
The Financial Services Authority has started disciplinary action against five mortgage brokers for weak "responsible lending" practices in the subprime mortgage market.
The UK financial regulator on Wednesday issued a damning report on the sector, which lends to borrowers with spotty credit histories. Arrears among subprime borrowers are currently running at 20 times those of mainstream mortgage holders, sparking concerns firms have taken on excessive risk in ramping up their lending in this area.
SEC examines subprime market (27 June) The Securities and Exchange Commission yesterday said it had initiated a broad-based investigation into the troubled subprime mortgage market. Christopher Cox, chairman of the SEC, told a congressional panel that the regulator was investigating a dozen subprime mortgage issues, including collaterallised debt obligations (CDOs), which are repackaged pools of debt sold to investors. The SEC is also looking into the secondary market for these instruments. Asked what had prompted the scrutiny, Mr Cox said "the climate and the environment". He added: "The attention that is being paid generally to problems in this area causes us to be alert to the potential for violations of the laws and regulations that we enforce."
The Securities and Exchange Commission yesterday said it had initiated a broad-based investigation into the troubled subprime mortgage market.
Christopher Cox, chairman of the SEC, told a congressional panel that the regulator was investigating a dozen subprime mortgage issues, including collaterallised debt obligations (CDOs), which are repackaged pools of debt sold to investors.
The SEC is also looking into the secondary market for these instruments.
Asked what had prompted the scrutiny, Mr Cox said "the climate and the environment". He added: "The attention that is being paid generally to problems in this area causes us to be alert to the potential for violations of the laws and regulations that we enforce."
