
0
2
$
TRILLIONS
3
1
1995
4
2001 2002
MORTGAGE -BACKED SECURITIES
ASSET -BACKED SECURITIES
OTHER SECURITIZED LOANS
66 Operational Risk Control
‘This is the first time that the banking system has ever pre-distributed losses,’ says
Martin Mayer, a guest scholar at the Brookings Institution. ‘Banks are playing the
interest-rate market, and it is starting to explode,’ suggests David A. Hendler, an
analyst with CreditSights.
5
Other experts have been expressing very similar
opinions.
Investors are angry about these happenings and, as is to be expected, some of the
majors are taking legal action. Pension funds and insurance companies are striking
back. CalPERs has joined ...