Replies to post #42125 on Houmu Holdings Ltd (HOMU)

[NRS2005]

Wien Tian's firm did what Citibank, Bank of America, Merrill Lynch, Morgan Stanley, Lehman Bros and about a dozen other companies did.

And to my knowledge not one of them thought there was anything wrong with the subprime market until it blew up. (Others outside the Banking System did, and do I wish I had listened.) It was actually considered a wonderful financial instrument to finance housing for the working poor. The Collateral Debt Obligation derivative was considered a masterpiece of financing.
Then it did blow up.

But if former Secretary of the Treasury Rubin could sell them at Citibank, I don't think it is a mark again Wei Tian as a loan office at a German Bank.

[m_a_d]

Many companies bought huge amounts of subprime paper, bundled it to mitigate the individual risks, and sold off derivatives based on the bundled paper. While these people didn’t sell any predatory loans, they made those sales possible. It tough however to lay blame on anyone beyond the mortgage broker who failed to protect the individual that was borrowing the money.

Whether an officer of this company was involved in selling derivatives is irrelevant.