Goldman Created Value Destroying Securitizations Now Pretends Not Responsible for Massive Systemic Risk

Companies / Credit Crisis 2010 Jan 18, 2010 - 03:26 PM GMT

Janet Tavakoli tells CNN Goldman and others created value-destroying securitizations and are trying to pretend they were not responsible for massive systemic risk.

(Eliot Spitzer’s view that banks receive taxpayer subsidized money and invest in T-Bills is quaint.)

JT Note: Shareholders should consider protesting high bonuses to the Board of Directors. High bonuses are only made possible through apparent earnings calculated with lax accounting combined with taxpayers’ ongoing subsidies (cheap funding, interest payments, asset purchases, guarantees and more). Not only are more reserves needed, but if taxpayers ever influence Congress enough to demand restitution for subsidies worth far more than the TARP program, banks will need every penny.

By Janet Tavakoli

web site: www.tavakolistructuredfinance.com

Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct associate professor of derivatives at the University of Chicago's Graduate School of Business. Author of: Credit Derivatives & Synthetic Structures (1998, 2001), Collateralized Debt Obligations & Structured Finance (2003), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, September 2008). Tavakoli’s book on the causes of the global financial meltdown and how to fix it is: Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street (Wiley, 2009).

© 2010 Copyright Janet Tavakoli- All Rights Reserved
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