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March 5, 2007

The Sub-prime Lenders Mess

Sub-prime lenders who securitized the loans (bundling them and selling them as debt securities) are in a bind (there stock prices have tanked) and the SEC, Department of Justice and many plaintiff lawyers are circling.  This is not a market failure.  If these folks oversold these collateralized debt securities with misleading claims, they will be held accountable to investors who have suffered losses. 

March 5, 2007 in Securities Markets | Permalink

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