Goldman Congressional Hearings

Gary Witt model, and tell the rating agency to use gaussian copula function model?
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uh oh, off to google i go.

 

I can openly admit I am not qualified to distinguish which of those two models is better or worse under which set of assumptions (I pointed out I modeled CDOs but never did so in an institutional ibank environment). But I would appreciate it if you could shed some light into whether I am correct in claiming that IBanks generally dont distribute their models to rating agencies but that its rather the other way around (Ibanks having access to the models of the agencies). I assume you are in the know about it when you ask questions on the qualitative nature of models.

That Anaconda knows jack shit becomes apparent when he mentioned Excel sheets. LOL. All those models are way too complex to be modeled in Excel. Most models access complex sets of C++ libraries and pricing information of mortgage pools have to be downloaded off special 3rd party providers in Bloomberg or other data vendors and stored and accessed from databases. But thanks for making it clear how little he actually understands.

 

dont change the meaning, I never talked about other instruments, lets keep with the topic of the modeling of CDO structures. Could you now answer my question in a straight forward manner? Or are you unable to?

 

He is Francis Ford Coppola's cousin

 

Thanks for speeding up my search.

 

I believe Mark DeCambre’s sources: Goldman Sachs (GS) is seeking to settle with the SEC — and with the hedge fund which invested in the “shitty” Timberwolf deal, too. More generally, if you bought any toxic assets off Goldman during the financial crisis, now is probably the best possible time to sue them for losses. And if you hold Goldman stock, definitely keep an eye on those class-action suits.

Goldman would dearly love to avoid the enormous embarrassment that would certainly accompany any lawsuit, especially if Goldman executives ended up having to endure hours of cross-examination from lawyers who will surely have worked out the best lines of attack from the 11-hour Senate hearings. The total amount it pays out in lawsuit settlements might be large, but it surely doesn’t want to risk going up against a jury, now that it’s had a taste of what public opinion feels like.

http://www.goldmansucs.com/2010/04/29/goldmans-settlement-strategy/

 

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Look nutmeg. This is e-mail from Gary Witt to talk about his model.
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"Gary Witt is now a professor of statistics and finance at Temple University, and he sent me the following information by email:"

•The new model would have increased the projected losses for AAA CDOs relative to the BET approach, which might have implied lower ratings, but not higher ones.
•The model introduced in August 2004 was not actually adopted by Moody’s for rating CDOs based on RMBS (residential mortgage-backed securities) or ABS (asset-backed securities, a category that often included subprime mortgage-backed securities).
•Instead, in 2005 Moody’s adopted the normal copula approach (favored by the investment banks).

http://13bankers.com/blog/

 

Nitro put the link on ET to the very good article about the man who create this gaussian copula function. I can not find this on ET search, but I will look again. (no time right now). Nitro post that article no recently, and I forget how long ago.

 

Two points:

1. The hearings were the best commercial for term limits for Congress that could be devised....

2. If everyone paid their mortgage none of this would have happened. John Paulson would be a much smaller hedge fund manager.

SteveD

 

I thought I would get a sensible answer, or a raging insult, but instead I get a stupid question.

I did not change the meaning, you are obviously due to your borderline psychotic bias. I originally stated that they might as well have copied & pasted the models from the IBs. Obviously the statement is over your head.
I gave you a clear answer, but since you are having difficulties: no I do not believe that any actual files would make it from one entity to the other, nor did I ever hear any information like, nor would I ever expect such silliness to occur.
I stand by what I said on the matter, and either you understand it or you do not. Any person significantly above the mental retardation level in any industry can imagine how these types of rackets are executed. You disagree vehemently, as you do with anyone else who does not fall in line with your opinion.