Don't let some bad eggs taint the rest. In every profession, there are bad eggs. Even those who manufacture milk (see CN milk scandal). Banks play an important role (investment banks included) in the matching resources (financial capital) to the users of capital (e.g manufacturing companies etc). I am not an expert on CDOs, but understand them to be a collection of various debt obligations (i.e beneath it all, these are companies (both good and bad) looking to borrow money) packaged for onward distribution to investors (i.e the owners of Capital)
I agree that what some people within the chain have done (e.g. GS traders shorting the same CDOs that the sales persons are promoting/selling) are unethical, and most are illegal.
But wanted to point out that CDOs are essentially just a means of raising money, a process that is fundamental/important to the "real" economy (e.g. manufacturing, services etc)
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Originally Posted by Unregistered
Ha, OK, the sentence should "Some Investor bankers are are nothing more than scammers...." Yeah small bunch, like only the top management? And when the management of GS, LB, MR, JPM testified in front of the senate, all of them maintained their innocence too. Right down from the analyst, relationship manager, internal auditor to the very top, most were turning a blind eye to the fiasco because they were paid so much. Am sure those people worked very very very long hours as well, to contribute to the scam of the century.
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