Hehe, I doubt Morgan Stanley is selling swaps anymore, Hubler reference was due to there Q4 bonds performance
Indeed, he didn't bother reading the credit scores in the pools, or having a junior spend 20-30 hours to make sure everything is legit, nobody really expected Moody's crookedness tho... I think the fact so many people wanted to buy AAA swaps should of raised some alarms for his team, cause under normal times that's nuts... Microsoft is AAA, buying swaps on there bonds, would be similar to flushing money down the toilet
Partially, but mostly it was due to him misjudging the liquidity of the "safe" tranches when the shit hit's the fan.