Affordable Housing Institute : US

[Continued from yesterday’s Part 1.]
  
“A short option position with unlimited downside and limited upside”
– Anonymous risk manager, describing the career implications of rejecting a deal
 
Yesterday’s post featured the anonymous confessions, published in The Economist, of a risk manager giving a fear’s-eye view of recent turmoil in the capital markets.  They’d had a nasty scare in […]

                              “A short option position with unlimited downside and limited upside”
– Anonymous risk manager, describing the career implications of rejecting a deal
 
A few weeks back, The Economist published a truly remarkable confession by a (prudently) anonymous risk manager from a major financial institution, explaining in candid detail precisely how and why the risk-management function is structurally […]

[Continued from yesterday’s Part 2 and the previous Part 1.]
 
While the main consequences of HR 3221, the great big deal known as the Housing and Economic Recovery Act (HERA) of 2008 (this Reuters summary is as good as any), are the financial and regulatory coup that completes a fundamental revolution within the financial system, changing […]

[Continued from yesterday’s Part 1.]
 
Yesterday we got rolling on the consequences of HR 3221, the Housing and Economic Recovery Act (HERA) of 2008 (this Reuters summary is as good as any).  Yes, it is a big deal: a huge deal. 
 

 
We’ve seen that it completes a fundamental revolution within the financial system, a financial […]

Yes, it is that big a deal.
 

Zeus, this is a big deal
 
I almost never comment on legislation in process, because the factory puts so many twists in the sausage that speculations are largely pointless – and this legislation, for all its multiple motivations and antecedents, probably would never have been enacted but for the Fannie/ […]