You would takea thousand subprime mortgages, put them into one bond, then you would sell...
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You would take
a thousand subprime mortgages, put them into one bond, then you would sell that
bond with a higher rating, because the rating
agencies believed that if all of these
mortgages were together they would have less
likelihood of failing
a thousand subprime mortgages, put them into one bond, then you would sell that
bond with a higher rating, because the rating
agencies believed that if all of these
mortgages were together they would have less
likelihood of failing
Full Transcript
00:00:01.000 --> 00:00:03.788
You would take
a thousand subprime mortgages,
00:00:04.067 --> 00:00:06.332
put them into one bond,
00:00:07.256 --> 00:00:10.499
then you would sell that
bond with a higher rating,
00:00:10.592 --> 00:00:12.629
because the rating
agencies believed
00:00:12.072 --> 00:00:15.679
that if all of these
mortgages were together
00:00:15.764 --> 00:00:18.302
they would have less
likelihood of failing.
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Movie Summary
Inside Lehman Brothers is the autopsy of a crime by those who tried to prevent it from within. Mortgage brokers from California and a handful of New York executives called out these fraudulent transactions. But nobody listened.
