On Nov 21, 2007, at 6:26 PM, Shane Taylor wrote:
> <http://www.nytimes.com/2007/11/16/business/16norris.html>
>
> [...] Banks put together collateralized debt
> obligations, or C.D.O.’s, many of which held subprime
> mortgage loans as assets. The C.D.O.’s were financed
> by issuing their own securities, and the risk of
> mortgage defaults seemed to pass to the people who
> bought the securities.
>
> But we now learn that some banks also handed out
> liquidity puts
And in this article, Norris amazingly tells us that Citi vice-chair, ex-Goldman co-chair, ex-Treasury Secretary Robert Rubin had never heard of a liquidity put until the shit had already hit the fan.
Doug