Replies to post #757770 on Fannie Mae-No Politics (FNMA)

[ron_66271]

Please See 3684 Regarding CDO.

https://www.docketbird.com/court-cases/In-re-Libor-Based-Financial-Instruments-Antitrust-Litigation/nysd-1:2011-md-02262


What Is a Collateralized Debt Obligation (CDO)?

A Derivative!

https://www.investopedia.com/terms/c/cdo.asp

The common theme between WaMu, Lehman’s, and F&F.



Ron

[Donotunderstand]

good question - but the words are beyond me

my impression - memory - was F and F written paper got hurt but that was NOT the real cited problem

Re Derivative Contracts --- are you referring to CDO? That would be the MBS paper that F and F create and sell (Collateralized Debt Obligation - or a bond (here Mortgage) with collateral) ?

or are you talking about the massive - so called market - of CDS -- which are synthetic BETS?

I imagine that F and F was not long or short a lot - if at all in the CRAZY CDS market that was 90% or more of the AIG collapse (the only "player" that was always - 100% - on the long side of these counter party BETS)

My sense is simpler ---- F and F - like a consumer or pension or ? - bought CDO - MBS that were built by private banks ----- Private Label MBS ---- for the high interest they provided the holder - and these PLMBS "bonds - paper" went down and down and then down in value = especially if you bought the wrong tranches - (some went to zero and never came back)