How Ratings Agencies Built the Foundation of the Financial Crisis

It’s been clear for a long time that the decimation of the U.S. economy couldn’t have occurred without the ratings agencies that were charged with determining how risky all of those mortgage-backed investment products might be.  And, since it was very hard to believe that agencies which had successfully performed this role for decades had simply suddenly forgotten how to …

Banks’ Self-Dealing Super-Charged Financial Crisis

From ProPublica: by Jake Bernstein and Jesse Eisinger ProPublica, Aug. 26, 10:09 p.m. Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history. Faced with increasing difficulty in selling the mortgage-backed securities that had been among their most lucrative products, the banks hit on a solution that …