In this seventh post of Gangsters and Banksters, we have another tale of bankers inflating the value of assets that are included in products to be sold to unsuspecting clients.
In her "Fair Game" column, Ms. Gretchen Morgenson writes about Bobby L. Hayes, an entrepreneur from Incline Village, Nevada. In the story of Mr. Hayes' painful and distressful experience with collateralized loan obligations (CLO), Ms. Morgenson explains why Mr. Hayes no longer trusts financial institutions.
Hint: It has to do with artificially inflating the value of loans contained in a CLO that Banc of America, now Merrill Lynch, sold to Mr. Hayes and the subsequent failure of that CLO.
Morgenson, Gretchen. "Fair Game: A Wipeout That Didn’t Have to Happen." The New York Times 4 February, 2012: online edition.
In her "Fair Game" column, Ms. Gretchen Morgenson writes about Bobby L. Hayes, an entrepreneur from Incline Village, Nevada. In the story of Mr. Hayes' painful and distressful experience with collateralized loan obligations (CLO), Ms. Morgenson explains why Mr. Hayes no longer trusts financial institutions.
Hint: It has to do with artificially inflating the value of loans contained in a CLO that Banc of America, now Merrill Lynch, sold to Mr. Hayes and the subsequent failure of that CLO.
Morgenson, Gretchen. "Fair Game: A Wipeout That Didn’t Have to Happen." The New York Times 4 February, 2012: online edition.
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