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TUESDAY, NOVEMBER 24, 2009
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NEWS ABOUT: collateralized debt obligations

collateralized debt obligations stories: 7 news summaries

Banks Get Back to
Risky Business as Usual

Plans to overhaul regulation losing momentum as banks return to health

Sep 9, 09 1:49 AM CDT
(Newser) - Banks that teetered on the edge of extinction last year are returning to their old ways as the shock of the financial crisis fades, the Wall Street Journal reports. The banks are handing out hefty compensation packages again and dealing in the same risky financial instruments that caused last year's... More »

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Goldman Sachs • Morgan Stanley • bank • Lehman Brothers • regulation • financial sector • collateralized debt obligations • financial crisis

Finance Geeks Behind Crisis Hard at Work on a Fix

The inventors of the CDO turn their math minds to better valuations of assets

Feb 23, 09 11:04 AM CST
(Newser) - The finance-desk math wizards who created the securities behind the market meltdown are now betting they can think their way out of the mess, the Wall Street Journal reports, working to design new systems for pricing bad assets fairly so governments can buy them off of banks’ balance sheets. “... More »

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finance • mortgage backed securities • collateralized debt obligations • securitized loan pools • valuation • financial crisis • toxic assets

New Bailout
Plan Hinges on Private Investors

Treasury will set 'floor price' on distressed assets to lure buyers

Feb 9, 09 8:37 AM CST
(Newser) - The Treasury's latest plan to rescue the banking industry relies heavily on private-sector investors, the New York Times reports. The government will guarantee a floor price on the toxic assets weighing down banks’ balance sheets, encouraging hedge funds, private equity groups, and even insurers to buy them. The plan... More »

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foreclosure • Treasury Department • financial sector • collateralized debt obligations • Obama administration • banking industry • Troubled Asset Relief Program • financial crisis • Wall Street bailout • Timothy Geithner • TARP • toxic assets

Profits Were Fake, Bonuses All Too Real

How risky schemes
left bankers flush, banks broke

Dec 18, 08 8:36 AM CST
(Newser) - Dow Kim was one of the leading bond traders at Merrill Lynch, and in 2006 he bundled together $500 million in loans into a huge CDO with the charming name Costa Bella. Since the subprime collapse, Costa Bella has cost Merrill millions—but Kim had already cashed out, awarded a... More »

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executive compensation • Merrill Lynch • CDO • bonuses • mortgage backed securities • compensation • collateralized debt obligations • financial crisis

GLOSSIES

 Wall Street's Doom 
 Years in the Making 

Liar's Poker writer saw this coming long ago, and so did some contrarian money men

Nov 27, 08 4:00 PM CST
(Newser) - When he wrote Liar’s Poker in 1989, Michael Lewis figured the end of Wall Street was near. After all, it had hired him, a 24-year-old with neither experience nor interest in finance. “Sooner rather than later,” he writes in Portfolio, “someone was going to identify... More »

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Wall Street • Michael Lewis • collateralized debt obligations • subprime crisis • financial crisis • credit default swap

Merrill Aims to Raise $8.5B, Prune Bad Debt

Brokerage announces surprise stock sale, $5.7B writedown

Jul 28, 08 7:51 PM CDT
(Newser) - Merrill Lynch announced a surprise stock offering today aimed at raising $8.5 billion for the brokerage, strapped by the mortgage and credit crises, the Financial Times reports. It also said it was writing down a further $5.7 billion in bad debt, and is selling collateralized debt obligations nominally... More »

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Merrill Lynch • writedowns • collateralized debt obligations • stock offering

BoA Writes Down $5.28B; 4Q Net Income Drops 95%

Writedowns had been estimated at $3B

Jan 22, 08 9:30 AM CST
(Newser) - Bank of America said today its net income plummeted 95% in the fourth quarter, and it wrote down $5.28 billion in collateralized debt obligation. Net income for the largest retail bank and credit-card issuer was $268 million, or 5 cents per share, compared to $5.26 billion, or $1.... More »

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Bank of America • net income • writedowns • collateralized debt obligations

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