It doesn’t get any more immoral than this. As the Securities and Exchange Commission civil complaint noted, in 2007, Citigroup exercised “significant influence” over choosing $500 million of the $1 billion worth of assets in the deal, and the global bank deliberately chose collateralized debt obligations, or C.D.O.’s, built from mortgage loans almost sure to fail. According to The Wall Street Journal, the S.E.C. complaint quoted one unnamed C.D.O. trader outside Citigroup as describing the portfolio as resembling something your dog leaves on your neighbor’s lawn. “The deal became largely worthless within months of its creation,” The Journal added. “As a result, about 15 hedge funds, investment managers and other firms that invested in the deal lost hundreds of millions of dollars, while Citigroup made $160 million in fees and trading profits.”
Watch the entire clip.
Outstanding interview recorded yesterday.
CNN Video - Oct. 30, 2011
Some good discussion of the college cost, student loan bubble.
Video - Deficit Committee Super Congress - Oct. 26, 2011
She got it half right. Taxing the rich won't fix a $1.4 trillion deficit, not even close. The problem in Washington is spending, much of it on the war machine. And closing loopholes that allow corporations like GE and Exxon to pay no income taxes would raise hundreds of billions annually. The 15% hedge fund tax loophole also needs to be scrapped.
Full transcript is inside.