I appreciate the site that referred to my “delusional conspiracy theories”, then referenced some quotes that have been attributed to me in international news media. As I responded to that site, I of all people respect your right to broadcast your opinion about me.
My conspiracy theories are borne out of what I see in my office every single day. These theories did not develop over night. They developed over years spent interviewing literally thousands of people and hearing the most absurd and non nonsensical stories. The mortgages that should have never been written. The short sales that don’t go through. The absurdity of the mortgage modification mess. And on and on and on. I then take what I see and hear first hand, through my own eyes and ears and filter it through the much larger reports that are now surfacing. So to my friends who issued their criticism I say, “I hope you’re right and that I am dead wrong. I hope I’m just a deluded conspiracy theorist.”…..Read below though and you’ll see that sadly, I’m not wrong……
Within Merrill Lynch, some traders called it a “million for a billion” — meaning a million dollars in bonus money for every billion taken on in Merrill mortgage securities. Others referred to it as “the subsidy.” One former executive called it bribery. The group was being compensated for how much it took, not whether it made money.
The group, created in 2006, accepted tens of billions of dollars of Merrill’s Triple A-rated mortgage-backed assets, with disastrous results. The value of the securities fell to pennies on the dollar and helped to sink the iconic firm. Merrill was sold to Bank of America, which was in turn bailed out by taxpayers.
What became of the bankers who created this arrangement and the traders who took the now-toxic assets? They walked away with millions. Some still hold senior positions at prominent financial firms.