Photo: Tavakoli Structured Finance
CDOs and CDOs squared were just “fraud to cover-up fraud,” according to Janet Tavakoli of Tavakoli Structured Finance.In this presentation made today to the Federal Housing Finance Agency Supervision Summit, Tavakoli explains individuals at firms making mortgage backed securities knew the loans they were securitizing were fraudulent.
Tavakoli walks through all the parties involved, and claims the banks held the U.S. government hostage as the market started to collapse, resulting in the bailout scenario. She places the blame for this scenario on the shoulders of banks that made fraudulent loans.
It’s a concise walk through of the market collapse some blame for the Great Recession.
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