CDOs and CDOs-squared were just "fraud to cover-up fraud," and the firms making mortgage-backed...

|By:, SA News Editor

CDOs and CDOs-squared were just "fraud to cover-up fraud," and the firms making mortgage-backed securities knew the loans they were securitizing were fraudulent, Janet Tavakoli tells a Federal Housing Finance Agency summit. The banks held the U.S. government hostage as the market started to collapse, she says, resulting in the bailout.