bogeytrain

Reforms of Credit Rating Agencies Likely to Be Modest

Simple solution here. Require all issuers to obtain a minimum of initial 4 ratings from 4 separate rating agencies, maintain 2 ratings at closing, but require the issuer to disclose the ratings from the 2 rating agencies that were dropped prior to closing.

Dimon in the Rough: How JPMorgan's CEO Manages Risk

I commend the executives @ JP for having the leadership and conviction to make such a decision.

In the fall of '06 I happened to share a cab with a mortgage broker at the Chicago airport. His former bank, which shall remain nameless, advised him to use the following sales line, "Sir/Madam, I will not verify your income, but will approve you based on your application. Now do you make $1mm per year to qualify for this mortgage?" He left his former employer because of such sales tactics.

With me being a credit guy, I could only listen in horror. 60% of my portfolio has been held cash over the last 3 years. Only now have I cautiously started looking for value picks.

The Long Case for Redwood Trust

One thing that has not been reviewed or disclosed yet either is what kind of CDO's are they? (What is the collateral, what are the underpinning referenced obligations, who is the counterparty, what are the attachment points for each CDO, what is the WAL of each deal?) I am interested investor but the lack of disclosure on the CDO is making me pull back.