“Some Bankers May Have Knowingly Sold Complex Assets Based on Flawed Valuations”
You think? According to the WSJ, the Serious Fraud Office is investigating sales of structured products such as credit-default swaps and collateralized debt obligations, amid concern some bankers may have knowingly sold complex assets based on flawed valuations before the global financial crisis struck two years ago. The director of the Serious Fraud Office, Richard Alderman, was quoted as follows: “Some of them are incredibly complicated and they are sold by very, very clever people.” “The question is not just were they mis-sold, because …
You think?
According to the WSJ, the Serious Fraud Office is investigating sales of structured products such as credit-default swaps and collateralized debt obligations, amid concern some bankers may have knowingly sold complex assets based on flawed valuations before the global financial crisis struck two years ago.
The director of the Serious Fraud Office, Richard Alderman, was quoted as follows:
“Some of them are incredibly complicated and they are sold by very, very clever people.”
“The question is not just were they mis-sold, because that gives rise to a number of regulatory issues, but was there actually fraud.”
Your guess is as good as the rest of us Richard but very very clever people will know that the burden of proof lies with the claimant and that won’t be easy.
August 4, 2009
Here in Canada, it was obvious to the sellers and the regulators that some financial products were flawed. They took steps to sell them anyway, without regard for the doctrine of “honest services”, or without regard for the customers who eventually purchased them. How do we know this? Because they applied for and received something called a “legal exemption” which is effectively a free pass to avoid having to follow our securities laws.
All 13 provincial and territorial securities commissions allowed this (in exchange for a fee) making them in my opinion either inept, corrupt or just plain unaware of what their job duty is.
Everything is part of the public record, all is documented. Approximately 20 financial firms took advantage of the purchase of these free skirt the law passes. In all, Canadian regulators have sold the public interest in this manner some 3000 times since 2000. No public input, no public notice, no public regard. Does any other country in the world allow this, or are we in Canada the only ones? I would love to hear from anyone on this topic.
http://www.investoradvocates.ca
doc film project ongoing at http://www.breachoftrust.ca
contact me at visualinvestigations@shaw.ca
August 5, 2009
“Flawed valuations ?”. Oh, you do surprise me.