O'Reilly logo

Financial Crisis Inquiry Report, Authorized Edition by Financial Crisis Inquiry Commission

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

10
THE MADNESS
029
The collateralized debt obligation machine could have sputtered to a natural end by the spring of 2006. Housing prices peaked, and AIG started to slow down its business of insuring subprime-mortgage CDOs. But it turned out that Wall Street didn’t need its golden goose any more. Securities firms were starting to take on a significant share of the risks from their own deals, without AIG as the ultimate bearer of the risk of losses on super-senior CDO tranches. The machine kept humming throughout 2006 and into 2007. “That just seemed kind of odd, given everything we had seen and what we had concluded,” Gary Gorton, a Yale finance ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required