Keyword: subprime mortgage
Too Big to Fail (6/18/2010)
Some financial institutions could commit moral hazard by leveraging their implicit high credit ratings and tax-payer guarantees to load up on high-risk debts and obligations.
Keywords: AIG, bailouts, bankruptcy, Citibank, credit default swaps, credit ratings, Fannie Mae, FDIC, Freddie Mac, JP Morgan Chase, leverage, Moral hazard, securitized debt, subprime mortgage, too big to fail
Who Rates the Raters? (6/17/2010)
Bond rating agencies found it hard to serve both the interests of bond investors and bond issuers since they were directly paid by bond issuers for favorable ratings.
Keywords: bond, Investment grade, mortgage-backed securities, rating agencies, subprime mortgage