Securitization caused the subprime crisis: Greenspan

The Globe and Mail has an article on the subprime crisis and how Greenspan blames it on the securitization of home loans rather than the poor credit quality of these loans. The problem being that the Rating Agencies didn’t rate these securitized assets appropriately and then when things started going bad, were very slow to react.

I actually almost joined the Fixed Income Securitization team at Citigroup over a year ago but turned down the offer as I decided to get out of banking entirely. Probably was a good decision regardless in the short run.

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10 Responses to Securitization caused the subprime crisis: Greenspan

  1. xiao chien says:

    can i have a copy of this study? i am a post graduate student that studying on this topic for this semester.
    so, can i have a copy of this topic that you wrote?

  2. SANETTE MYBURGH says:

    I’m busy with my CFP

  3. SANETTE MYBURGH says:

    I’m busy with my CFP diploma and need some information regarding the subprime crisis for a assignment. Can I plse have a copy.

  4. Jhonson says:

    Fuck me Susi

  5. TGee says:

    Could I please get a copy of this study as well? I am studying this topic as well.

  6. Peter L. Griffiths says:

    The whole point of securitization was to enable Fannie Mae and Freddie Mac to sell on to the market the dud mortgages they had accumulated from guaranteeing subprime mortgages.

  7. scene makeup says:

    scene makeup…

    […]Securitization caused the subprime crisis: Greenspan « Executive Summary[…]…

  8. Peter L.Griffiths says:

    Further to my comment of 6 September 2011, securitization was later enthusiastically adopted by British building societies under the relaxed regulations of several Acts of Parliament from 1986 to 2002, leading to bailouts of Northern Rock in 2007 and HBOS in 2008.

  9. downloads says:

    downloads…

    […]Securitization caused the subprime crisis: Greenspan « Executive Summary[…]…

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