Washington, D.C. – April 20, 2010 – (RealEstateRama) — News reports on SEC investigations today illustrate what the Wall Street Journal calls “an open secret on Wall Street”: investment banks created products it knew would fail just to give hedge funds an opportunity to bet against them. The fact that these products were being created solely as a way for hedge funds to bet against the housing market was never disclosed to those who invested in them. Banks profited by taking fees for moving these investments, and then got bailed out by taxpayers when the investments went bad. Pension funds, mutual funds, local governments and other investors on Main Street lost heavily
More info...
