“Widespread Interconnected Ponzi Scheme”


Repairing the Damage of
“Fraud as a Business Model”

Presentation to the
Federal Housing Finance Agency Supervision Summit
Washington, D.C.

Janet Tavakoli, President
Tavakoli Structured Finance, Inc.
December 8, 2010

Janet Tavakoli’s presentation she prepared for the Federal Housing Finance Agency Supervision Summit earlier today…

Some key takeaways from the presentation…

Widespread Interconnected Ponzi Scheme

Securitization professionals at several  financial institutions knowingly bundled fraud  riddled loans into RMBS.  New investors  needed to pay-off old investors.  To delay  being busted, they escalated and sped up the  fraud. This required more “complexity” and the  involvement of more cronies.   Many CDOs and virtually every CDO-Squared  were more fraud to cover-up fraud.

Fraud audits are in order

Financial Meth Labs
• Investment banks – securities fraud
• Mortgage lenders – widespread fraud
• Rating agencies – junk science
• CDO “managers” – crash test dummies & accomplices
• Certain hedge funds – shorted CDOs they “managed”
• Bond insurers – money for nothing
• Regulators – poseurs and enablers

Banks (not borrowers) Broke the Law
•  Delinquency is not a crime.
•  Being foreclosed upon is not a crime.
•  Bankruptcy is not a crime.

Full presentation below…




Tavakoli Fraud as Business Model