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Jeffrey Verschleiser

January 14, 2012

From Matt Taibbi‘s blog at Rolling Stone:

So in essence, Verschleiser was triple-dipping. First he was selling worthless “sacks of shit” to investors, representing them as good investments. Then, he kept the money from the return sales of the wormy apples. And then, on top of that, he made money by betting against the insurers he was sticking with these toxic assets…

He reportedly heads Goldman’s mortgage division now. And after cutting a mile-wide swath of losses through the American economy, helping destroy two venerable firms in Bear and Ambac, bilking the taxpayer for untold millions more (he is also named in a lawsuit filed by the Federal Housing Finance Agency for allegedly speeding bad loans onto securitization before they defaulted), Verschleiser is now living the contented life of a proud family man, renting out a 94-room hotel for three days for his daughter’s Bat Mitzvah…

One can almost understand a regulator not wanting to take on the whole circular securitization scheme — Bear lends money to corrupt mortgage firm, mortgage firm makes bad loans, Bear packages bad loans and sells to investors, then takes the proceeds and creates more bad loans — because it is so complex and difficult to prove.

But in this case there are simple issues of fraud and theft thatcould be taken on without having to prosecute broader crimes related to securitization. But prosecutors, apparently, just blew those off. In the current environment, regulators even miss the layups.

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4 Comments leave one →
  1. rbmn permalink
    January 14, 2012 2:14 pm

    It’s the missed layups that can make a difference in this era. One step forward – and all that.

    I find the basketball analogy disingenuous, at best.

  2. rbmn permalink
    January 14, 2012 7:29 pm

    Born with a silver spoon in his mouth and grew up anti-authoritarian of sorts, I’d say from that Wiki

  3. January 14, 2012 10:14 pm

    Typically insightful.

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