I think even the bankers themselves do not understand the exotic instrument offered by investment banking such as Goldman (Oo yeah, they are being probed by SEC for possible fraud on this exotic financial instrument). This may explain why highly sophisticated player such as RBS also was being duped by Goldman. Ever heard of CDO (Collateralized Debt Obligation)? This is the culprit of the worse financial crisis since the great depression. So what is CDO and why this has caused so much pain around the world? What are CDO’S? Company A sells 10 mortgages...
