Subprime Mortgages: The Predators' Fall

GARP Risk Review [Journal of the Global Association of Risk Professionals]
March/April 2007 Issue 35 released April 13, 2007
by Janet Tavakoli

In this article, Janet Tavakoli discusses the impact that predatory lending practices have had on borrowers and investors, explores the role investment banks have played in the rise and fall of subprime lenders and explains the dilemma that subprime relationships pose for risk managers working at banks.

Janet Tavakoli is the president of Tavakoli Structured Finance, a Chicago-based firm that provides consulting to financial institutions and institutional investors. Ms. Tavakoli has more than 20 years of experience in senior investment banking positions, trading, structuring and marketing structured financial products. She is a former adjunct professor of derivatives at the University of Chicago's Graduate School of Business. She is the author of: Credit Derivatives & Synthetic Structures (John Wiley & Sons, 1998, 2001), Structured Finance & Collateralized Debt Obligations (John Wiley & Sons, 2008).

Janet Tavakoli's book on the global financial meltdown is Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street (Wiley 2009).

Clients of Tavakoli Structured Finance have the benefit of proprietary consultation, which is not available in any other paid or public forum. Clients also commission proprietary research and analysis.

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