VIDEO: BNN's Squeeze Play - June 24, 2008
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Janet Tavakoli told BNN that the SEC failed to stop Hurricane Ponzi, the most massive fraud she has seen in her entire career, but the SEC did not do its job when it had its chance. The SEC now saying we can ignore ratings, but that proposal is “insane.” There is no backup plan. Instead, the rating agencies should verify appropriate due diligence had been done. Fix the rating agencies and hold sophisticated investors accountable for evaluating investments. Ratings should be a necessary, but not sufficient, condition for investing.

Insurance regulators may have to take creative steps to salvage municipal bond insurance.

DOJ investigations will come down to (mis)pricing. If Bear Stearns managers are held accountable on pricing, then other investment banks will have to answer for not writing down assets in second quarter 2007 (and earlier).


Clients of Tavakoli Structured Finance also have access to proprietary TSF research, which is not published in any other paid or public forum.

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