Securitization professionals at severalfinancial institutions knowingly bundled fraudriddled loans into RMBS. New investorsneeded to pay-off old investors. To delaybeing busted, they escalated and sped up the
fraud. This required more “complexity” and the
involvement of more cronies.Many CDOs and virtually every CDO-Squaredwere more fraud to cover-up fraud.
Widespread Interconnected Ponzi Scheme