http://market-ticker.org/akcs-www?post=168266
Here's Karl doing what Karl does, making sure that YOU can see how the pieces tie in together. This house of cards is crumbling fast.
As Janet Tavakoli notes over at Huffington Post:
Landesbank Baden-Wuerttemberg, a German state-owned bank, is suing Goldman Sachs over a $37 million loss on its investment in its share (a tranche) of a CDO called Davis Square VI. TCW, the manager for all of Goldman Sach's Davis Square deals, is also being sued:
"Goldman knew at the highest levels of its organization that its representations to LBBW Luxemburg that the notes merited triple-A ratings and were high grade were blatantly false," the Stuttgart-based bank said. "Goldman committed fraud and, or, was negligent in marketing and selling the notes to LBBW Luxemburg."
Right.
Now, who knew that the REMICs and MBS being put together (which were the foundation for all these CDOs, CDO^2s and other hinky crap) were not "high grade" and did not merit "AAA" ratings?
How many notes were actually not conveyed but rather are sitting in an originator's warehouse, were shredded, or were shipped overseas? This, incidentally, is why we have a mess with foreclosures right now - the servicers don't have the notes (properly endorsed) with which to file their forelosures, despite the pooling and servicing agreements saying they will and do, or they'd just file the actual "wet signature" notes bearing those endorsements.
Why would the originators fail to properly convey all this stuff?
Was it pure laziness in the "go-go" years or something more?
Well, consider this one Janet (and everyone else).....
You can't audit what you don't have, can you?
PS: This is not intended to be "snarky"; yes, I'm aware you've been hollering on this in various professional venues. But until it makes the mainstream press in a cogent form such that the essence of how this happened and is STILL being covered up is laid out in a form that the common man can understand, and why he should care - such as what's now happening where people's homes are literally being stolen, we cannot hope to have anything done about it.
