CPI: Who’s behind the financial meltdown?
The Centre for Public Integrity, a think -tank, published this series of reports today examining in-depth the causes of the financial meltdown. Go read it. I promise it’s worth the trouble. See this article in particular for an in-depth examination of the role some of the largest financial institutions played.
Between 2000 and 2007, backers of subprime mortgage-backed securities — primarily Wall Street and European investment banks — underwrote $2.1 trillion worth of business, according to data from trade publication. The top underwriters in the peak years of 2005 and 2006 were Lehman Brothers at $106 billion; RBS Greenwich Capital Investments Corp., at $99 billion; and Countrywide Securities Corp., a subsidiary of the lender, at $74.5 billion. Also among the top underwriters: Morgan Stanley, Merrill Lynch, Bear Stearns, and Goldman Sachs.
Some interesting charts: