In the mid-’80s, Wall Street turned to the quants—brainy financial engineers—to invent new ways to boost profits. Their methods for minting money worked brilliantly… until one of them devastated the global economy.
via Recipe for Disaster: The Formula That Killed Wall Street
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From late 2005 to the middle of 2007, around $450bn of CDO of ABS were issued, of which about one third were created from risky mortgage-backed bonds (known as mezzanine CDO of ABS) and much of the rest from safer tranches (high grade CDO of ABS.)
Out of that pile, around $305bn of the CDOs are now in a formal state of default, with the CDOs underwritten by Merrill Lynch accounting for the biggest pile of defaulted assets, followed by UBS and Citi.
The real shocker, though, is what has happened after those defaults. JPMorgan estimates that $102bn of CDOs has already been liquidated. The average recovery rate for super-senior tranches of debt – or the stuff that was supposed to be so ultra safe that it always carried a triple A tag – has been 32 per cent for the high grade CDOs. With mezzanine CDO’s, though, recovery rates on those AAA assets have been a mere 5 per cent.
via FT.com / Markets / Insight – Insight: Time to expose those CDOs.
How did the hackers steal $9 million in one 30-minute time period using only 100 ATM cards you ask? That shouldn’t be possible given the daily limits (usually about $500/day) placed on all ATM cards. Well it turns out that the hackers applied military like precision to old ATM Scam techniques and added a touch of devious ingenuity to pull this one off. Here is a look at how the theft was perpetrated.
via Largest Coordinated ATM Rip-off Ever Nets $9+ Million in 30 Minutes | NetworkWorld.com Community. Continue reading “How To Steal $9+ Million in 30 Minutes From ATMs”