Wednesday links aren’t quite what they seem
Banks Juice Profits, Fantasize About Loan Quality: By lowballing loan-loss reserves, banks can squeeze out substantial profits ahead of a stress test.
Quote of the Day: The amount of information needed to understand fully a CDO-squared. But actually that’s kinda the point, people were counting on the law of large numbers to help them out. Unfortunately, this particular large number was an exception to the rule.