Comments on: Sloppy subprime valuations on Wall Street?… http://www.footnoted.com/sec-stuff/sloppy-subprime-valuations-on-wall-street/ Morningstar's guide to what's hiding in SEC filings Tue, 07 Feb 2012 21:51:20 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Wendy Fried http://www.footnoted.com/sec-stuff/sloppy-subprime-valuations-on-wall-street/comment-page-1/#comment-5915 Wendy Fried Wed, 30 Jul 2008 15:37:17 +0000 http://www.footnoted.com/?p=2032#comment-5915 Thanks for your comment, Brian. I just want to emphasize that the SEC letter only talks about the holes in some dealers' processes for independently verifying traders' valuations of subprime paper. It doesn't make a judgment about the valuations themselves. But of course this kind of thing does lower one's level of confidence in the valuations. Wendy Thanks for your comment, Brian. I just want to emphasize that the SEC letter only talks about the holes in some dealers’ processes for independently verifying traders’ valuations of subprime paper. It doesn’t make a judgment about the valuations themselves. But of course this kind of thing does lower one’s level of confidence in the valuations.

Wendy

]]> By: Brian Greer http://www.footnoted.com/sec-stuff/sloppy-subprime-valuations-on-wall-street/comment-page-1/#comment-5914 Brian Greer Wed, 30 Jul 2008 12:29:34 +0000 http://www.footnoted.com/?p=2032#comment-5914 Why does this remind me of Enron assigning arbitrary values to their deals back in the day? Am I wrong in thinking there is a similar attempt to "book" unrealistic values here as well? Why does this remind me of Enron assigning arbitrary values to their deals back in the day? Am I wrong in thinking there is a similar attempt to “book” unrealistic values here as well?

]]> By: Wendy Fried http://www.footnoted.com/sec-stuff/sloppy-subprime-valuations-on-wall-street/comment-page-1/#comment-5903 Wendy Fried Mon, 28 Jul 2008 16:04:16 +0000 http://www.footnoted.com/?p=2032#comment-5903 Hi John, Thanks for your comment. Of course, everyone conducts internal and external audits of their compliance procedures, and in my experience the vast majority of compliance and audit people are conscientious and take their jobs seriously. Yet, as you say in your blog post, it's a safe bet that you'll find holes in the compliance process as it plays out in the real world. Seems like a perennial problem that continues no matter how many resources firms throw into compliance. Wendy Hi John,

Thanks for your comment. Of course, everyone conducts internal and external audits of their compliance procedures, and in my experience the vast majority of compliance and audit people are conscientious and take their jobs seriously. Yet, as you say in your blog post, it’s a safe bet that you’ll find holes in the compliance process as it plays out in the real world. Seems like a perennial problem that continues no matter how many resources firms throw into compliance.

Wendy

]]> By: Hard-Boiled Compliance http://www.footnoted.com/sec-stuff/sloppy-subprime-valuations-on-wall-street/comment-page-1/#comment-5894 Hard-Boiled Compliance Sun, 27 Jul 2008 01:03:28 +0000 http://www.footnoted.com/?p=2032#comment-5894 <strong>The Emporer's New Compliance Program...</strong> I've recently been talking with investment advisers about their compliance practices. What's funny is that although none of them have any relation to each other, I picked up a pattern in the basic message that they were communicating to me.... The Emporer’s New Compliance Program…

I’ve recently been talking with investment advisers about their compliance practices. What’s funny is that although none of them have any relation to each other, I picked up a pattern in the basic message that they were communicating to me….

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