http://www.ethiopianreview.com/articles/15568 Ethiopian News and Opinion Journal Thu, 02 Feb 2012 13:29:34 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.ethiopianreview.com/articles/15568/comment-page-1#comment-16967 GREG Fri, 24 Jul 2009 21:52:57 +0000 http://www.ethiopianreview.com/articles/?p=15568#comment-16967 It was not our business model to invest in CDOs we merely created those to sell them to clients. Actually we transformed tons of loans into tradable bonds with a bespoke portion of yield and risk for the specific needs of investors. The problem was that just when the crisis begun investors stopped buying this stuff and Lehman ended up with an uncontrollable chunk of e.g. real estate exposure in their camp. What you are describing here is simple math regardless the investment banking reality. Lehman was not stupid or let's say did not made more mistakes than others like Goldman but they were less connected to the government and hence Goldman received a lifeline while Lehman didn't. (Think of ex-Goldman Paulson's AIG rescue) It was not our business model to invest in CDOs we merely created those to sell them to clients. Actually we transformed tons of loans into tradable bonds with a bespoke portion of yield and risk for the specific needs of investors. The problem was that just when the crisis begun investors stopped buying this stuff and Lehman ended up with an uncontrollable chunk of e.g. real estate exposure in their camp.
What you are describing here is simple math regardless the investment banking reality. Lehman was not stupid or let’s say did not made more mistakes than others like Goldman but they were less connected to the government and hence Goldman received a lifeline while Lehman didn’t. (Think of ex-Goldman Paulson’s AIG rescue)

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