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Re: Interesting Provision of the Bailout Bill
From: David Farber <dave () farber net>
Date: Mon, 29 Sep 2008 06:08:05 -0400
From: Newmedia () aol com
Date: September 29, 2008 5:35:29 AM EDT
To: dave () farber net
Subject: Re: [IP] Interesting Provision of the Bailout Bill
I believe that you are right. I'm not an attorney but I have some
understanding of the finances involved.
What is happening is an authorization to restructure underlying loans,
regardless of the CDS/CDO derivative (and SPV, okay don't ask <g>) off
balance sheet bets that were made by the banks and other "servicers"
In addition, where the banks reserves can't cover the credit they
extended, I presume they will be "bailed out" so that they can remain
So, as you have implied, the "investors" in these derivative schemes
are not being "bailed out" -- in fact they are getting hosed.
New York City
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