Originally Posted by shootermcgavin7
A curious statement. Do you have any data? I'll start with the most recent one....investment banks underwriting mortgage securities were regulated?
Sure they were. Don't pretend that the buyers' weren't regulated and that no regulators exis in conduit markets.
THE problem is that the credit default swap should have been classified as insurance and regulated as such. People biught that the swaps were good enough to qualify shoddily underwritten or shoddy borrowers qualified as investment grade.
Don't exonerate the buyers here. Investment banks were filling orders. Somebody thought the insurance was viable, including FDIC guys evaluating bank investment portfolios. Posted via VolNation Mobile