Friday, July 25, 2008

Pulling the Pin on the Grenade: 90% RMBS Writedown

Prepare for a special upcoming session of contortion logic from Wall Street investment banks.

The National Australia Bank has acknowledged that over $1B of their mortgage-backed securities have lost 90% of their value. In particular, they are expecting 100% loss on their AAA senior strips and 50% loss on their AAA super-senior strips.

Acknowledging these kinds of losses would be devastating for Wall Street, so naturally this sort of truthful behavior will be attacked.

More about the article can be found here:
Business Spectator - Apocalypse NAB

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