Comments on: Mortgage Backed Securities Put Our Financial System at Risk http://www.dailyreckoning.com.au/mortgage-backed-securities-risk/2008/09/29/ An independent perspective on the Australian and global investment markets Sun, 08 Nov 2009 09:28:06 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/mortgage-backed-securities-risk/2008/09/29/comment-page-1/#comment-43529 Coffee Addict Mon, 29 Sep 2008 07:17:32 +0000 http://www.dailyreckoning.com.au/?p=3872#comment-43529 If not for the high leverage, many structured investment vehicles (SIVs) would indeed be secure. A legal problem for the banks is that they "forgot" to tell any of the investors about the leverage. As a consequence they will be sued for deceipt. As Dan says, better transparency (rather than other forms of regulation) is what the market needs. If not for the high leverage, many structured investment vehicles (SIVs) would indeed be secure. A legal problem for the banks is that they "forgot" to tell any of the investors about the leverage. As a consequence they will be sued for deceipt.

As Dan says, better transparency (rather than other forms of regulation) is what the market needs.

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