Friday, August 01, 2008

Brokers Gone Wild...

As part of my continuing series titled "What were you thinking" comes this story from yesterday Wall Street Journal.

It seems two former Credit Suisse brokers were misleading a few clients on what they were really buying for them.

In one example, Mr. Tzolov sent a report to the client regarding a multimillion-dollar purchase of "South Coast Funding St. Loan." The actual name of the security is "South Coast Funding IV Ltd.," which is largely backed by real-estate- or mortgage-related securities. It may also include a small portion of student-loan securities, according to the security's offering document.

This because the client only purchased securities backed by Student Loans.

Well for now one of he brokers has aparently left the country and the other waits for a trial.

As I have said before it just doesn't seem worth it.

CLICK HERE to read the entire story. It is well worth it.



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