financial bubble: SIV= Imagine Enron, Bank Wide. - 11/30/07 11:10 AM
First, a disclaimer. I am not a banker. I am not a financial advisor. I'm just a Realtor. Please ignore anything that I say.
Update 12-1-07: I want to make the concept of SIVs more clear.
 
 
 
Imagine this:
Bank has $1 Billion making 5% Bank figures they can start a fake company (which is not reported to shareholders, and off all books) and "Lend" the fake company/subsidiary the $1B in order to buy riskier portfolios and sell them for 8%, but with a "this is backed by an A grade company." Newly added 12-5-07 bank lever the business 14 to 1.  Pocket the 3%, and that makes … (29 comments)

 
FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com (Northern Virginia Homes - FRANKLY REAL ESTATE Inc) Rainmaker large

FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com

Arlington, VA

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