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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsE-Mails Give Glimpse into Deal that Fueled Financial Meltdown
http://www.nationofchange.org/emails-give-glimpse-deals-fueled-financial-meltdown-1344347616As ProPublica has been detailing for two years, Wall Street banks and the hedge fund Magnetar worked together to build mortgage-backed deals that the hedge fund also bet against. The more than $40 billion of deals helped fuel the crash of 2008.
Now, recently collected emails from bankers and a Magnetar executive involved in some of the deals appear to shed new light on how they did it.
Fiduciaries threatened with a loss of business if they didn't cooperate. Prime movers behind a billion-dollar deal suggesting they need to keep their actions hidden. It's all portrayed in the emails, which were included as part of a civil lawsuit against Magnetar filed in New York's Southern District Court in late June. (Our reporting is also cited in the complaint.)
The suit was brought by Italian bank Intesa San Paolo, which lost $180 million on an investment linked to a mortgage bond deal put together by Magnetar and French bank Calyon. The deal was "built to fail," in the words of the complaint.
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E-Mails Give Glimpse into Deal that Fueled Financial Meltdown (Original Post)
xchrom
Aug 2012
OP
malaise
(269,050 posts)1. When are these criminals going to prison? n/t
xchrom
(108,903 posts)3. that remains a very good question. nt
Angry Dragon
(36,693 posts)4. +95,592
I hope very soon
tosh
(4,423 posts)2. May this civil case be the first of many
and may criminal charges soon follow.