The Business Editors of the New York Times seems forever determined to whitewash and sanitize one of the core causes of the 2008 financial debacle and those who were central to the melt down.
Now some four years later we are lectured by an article "Reading the Fine Print in Abacus and Other Soured Deals" 11.02.12 presented as the New York Times' top story in their New York Times 'DealBook' ruminations edited by their financial star reporter and CNBC airtime host Andrew Ross Sorkin. The article reminded us that "A common refrain from the financial crisis is that poor disclosure was a contributor, if not the cause of the financial crisis." That "Buyers... were misled or not provided full information concerning their investments. The results were catastrophic when the market crashed."
Even catastrophic barely describes the dimension of the losses incurred by those who entrusted their investment decisions to the good name and heretofore reputation of the 'financial instrument' peddlers hawking the likes of 'Abacus','Timberwolf','Class V Funding III', and on, incurring write-downs of $420 billion, or 65 percent of their face value while those C.D.O. instruments issued in 2007 alone losing a staggering 84 percent their face investment value. This, while making billions for those who shorted them with the informed foresight whether it was Goldman Sachs and their John Paulson inspired trash cans or others of their ilk who were able to pass off decidedly questionable financial products hiding the pitfalls in the boiler plate of the C.D.O.'s , while using their once impeccable standing and reputation, not to speak of personal trust, to sell these instruments knowing that the buyers, both sophisticated and otherwise would rely on the reputation and standing of the investment bank's portfolio manager's selection.
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