Credit default swaps - fraud by investment banks

[oildaytrader]

Fraud invented by investment bankers = credit default swaps

“Credit-default swaps, where you insure your neighbor’s house just to destroy it and make money from it, that’s exactly what we have to curb,” Angela merkel


White House adviser Paul Volcker said the “abuse” of derivatives to hide the size of Greece’s budget deficit highlights the need for regulation and European Central Bank President Jean-Claude Trichet said derivatives still pose risks to financial stability.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a26n.U6qS6cU

 

[oildaytrader]

Here is an article linking origins of credit default swaps to investment bankers.

http://blog.twowolves.co.uk/2008/03/23/history-of-the-credit-crisis/