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Just a thought
How much of the fault for the minibond sales should be attributed to the sale people. The personal bankers who hawk those products to retail investors, boasting its higher returns and low risk?
I mean, the public (and other experts) argue that the banks should have done their due diligence and detected problems within lehman...but the fact is that pre financial crisis, lehman bros was a A1 rated company.
Was it wrong for banks like DBS to introduce bonds tied to the ability of lehman to repay them as safe as this is just as it was indicated by the A1 rating?
Shouldn't the rating agencies (who are generally expected to have the expertise in evaluating credit) bear some responsibility in their failure to detect problems within Lehman?
I mean, there's an implied reliance by major financial institutions on the product that Moodys and Fitch are marketing..rite?
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Posted by emsii on 2008-11-20 02:44:46 | Rating: | Views: 25
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