In Before the 2008 Financial Crisis, a Real Real Estate Market Did Not Exist, finance expert witness Chris McConnell, AIFA, writes:
Chris McConnell AIFA®, FiduciaryFORENSICS® expert based in Los Angeles, has released his FiduciaryALERT™ for 2011. According to McConnell, after every mortgage borrower signed their name they thought they were just getting a mortgage. In addition to lending the money, certain banks “converted” those mortgages into residential mortgage backed securities (RMBS)and held them as investments, for their own profits. The so-called “value” of these mortgages, was leveraged quite literally for pennies on the dollar. Paper profits mushroomed allowing banks to hand out massive bonuses to their own proprietary traders. It was all done according to certain banks’ and often the very same traders’ internal proprietary computer models.
Read more: prweb.com.