After transferring trillions of dollars of bad debt or toxic assets from the books of financial speculators to those of governments, global financial moguls, their representatives in the State apparatus and corporate media are now blaming social spending (in effect, the people) as responsible for debt and deficit!
After the bumper profits of last year the least the Wall Street Banks could have done is start sorting out the toxic assets mess. However in absence of any guidelines from the regulators they went about distributing fat bonus payments and the opportunity to clean up the balance sheets was lost once again.
After the bumper profits of last year the least the Wall Street Banks could have done is start sorting out the toxic assets mess. However in absence of any guidelines from the regulators they went about distributing fat bonus payments and the opportunity to clean up the balance sheets was lost once again.
Now that Banks are profitable they must write off the toxic assets, especially for commercial mortgages before paying bonus.
Hey, remember the TARP program? If banks are now paying back TARP funds, then what happened to those toxic assets? Are they sitting in a canyon in Wyoming for the next 10,000 years? Not exactly.
The G20 group is this weekend discussing regulating banks to avoid another global crises. Just as a former Goldman CDO man published a novel he wrote “about the cliched high life I had been living while creating and selling billions upon billions of these securitization and credit derivative products, now better known as ‘toxic assets”.
No one knows exactly how many toxic assets still haunt the books of major investment banks, insurance companies and other mortgage-backed securities holders…
Loans with ridiculous fees and interest rates have ensured they are unlikely to be repaid, and has a large number of bad debts and toxic assets should be given.
Ambac Assurance entered into a nonbinding agreement to commute all of its remaining collateralized debt obligations of asset-backed securities, another series of toxic assets.
Citigroup’s former CEO Chuck Prince and former chairman Robert Rubin sure are sorry that their bank’s toxic assets struck a near-fatal blow to the economy and necessitated a $45 billion federal… Business News Summaries. | Newser
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