Apr 16, 2010

Jim Bianco on the potential for massive CDO fraud in 2007

We've seen more of this coming and that's really what's going on that if we're going to criminal-- alright, I shouldn't say criminalize. But if we're going to say that the selection of these loans was fraudulent, that's going to be the game-changer because everybody used some kind of bias in selecting these loans. Were all those biases disclosed? Probably not in most of the cases. And if the SEC is going to say that that's what's happened, then all of these 2007-deals are going to have to be reviewed.

~ Jim Bianco, Bianco Research, CNBC Street Signs, April 16, 2010

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