The big Wall Street firms—Bear Stearns, Lehman Brothers, Goldman Sachs, Citigroup, and others—had the same goal as any manufacturing business: to pay as little as possible for raw material (home loans) and charge as much as possible for their end product (mortgage bonds).
scores? Here the Wall Street bond trading desks exploited another blind spot in the rating agencies’ models. Apparently the agencies didn’t grasp the difference between a “thin-file” FICO
The Mexican harvested strawberries; Wall Street harvested his FICO score. The models used by the rating
The catastrophe was foreseeable, yet only a handful noticed. Among them: a Minneapolis hedge fund called Whitebox, a Boston hedge fund called The Baupost