Quote:
Originally Posted by Barry-xlovecam
They bet red and the ball landed on a black number ... 
A hedge investment against their securities and/or loans that is highly leveraged e.g.; derivatives (or financial roulette). |
Quote:
Originally Posted by JP-pornshooter
mark to market = fair value
synthetic credit portfolio = credit swab contracts
in other words big losses on dealing with contracts hedging against commercial loans.
i think this is how we got in trouble the first time.
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So basically they so mistrust their own judgment when making loans, that they are trying to cover their asses by other methods I really don't understand. Wouldn't prudent lending and the occasional loss be more logical the long run?
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