This seems to be an attempt by the government to answer the question of
"if this is a crime, where and who are the victims?".
So:
1. lenders got paid in full, so they are not victims.
2. builders - some had to look for refinancing of loans due to UDF IV
liquidity - question remains about Bass's fault in that (on its
looks very substantial, but trial was not conducted yet).
3. investors - the bottom line point has always been - were the loans
the funds made legitimate and was the cash flow projected to
happen likely to happen? I never heard a hard no from the
government.
4. brokers who misrepresented the loans (actually the collateral
profile and cash flow schedule in reality) should be punished
severly. they charge 6% for their services. they get paid by the
issuer, but that cost gets rolled into the investment. I hope
this makes some kind of fiduciary duty responsibility on these
middle men.
5. I wish someone could compile a schedule of projects, expectations
of cash flow timing and present it as a type of liquidation
analysis of IV. that would make it clear once and for all if the
loans are money good and if investors were taken for a larger
ride than cash flow timing. I suspect the government and Bass
would NOT want to know those answers, but I would want to lnow
officially. I think I know them unofficially already.
AI
