It was also ignoring warnings from the outsourced, back office accounting side of the business. To many 'this doesn't look right' 'these numbers can't be correct' being answered with, by the fund managers with 'well, our brokers agree this is the pricing of these securities.' And they/the managers would shop around to find a broker that agreed with them. Who's 'opinion' agreed.
It's interesting to note that, in the Bear Stearns HG fiasco, BS, the auditors (D&T) were both sued. The accounting firm (back office) was not.
Until there is some sort of accountability for how hedge securities are priced, some across the board agreement, we're going to have problems.
I know what I'm talking about. Guess who I worked for.
(no subject)
The answer really and truly is 'greed'.
It was also ignoring warnings from the outsourced, back office accounting side of the business. To many 'this doesn't look right' 'these numbers can't be correct' being answered with, by the fund managers with 'well, our brokers agree this is the pricing of these securities.' And they/the managers would shop around to find a broker that agreed with them. Who's 'opinion' agreed.
It's interesting to note that, in the Bear Stearns HG fiasco, BS, the auditors (D&T) were both sued. The accounting firm (back office) was not.
Until there is some sort of accountability for how hedge securities are priced, some across the board agreement, we're going to have problems.
I know what I'm talking about. Guess who I worked for.