Goldman Sachs' GSAMP Trust was able to create AAA rated securities by:
A) Separating the mortgage portfolio into tranches and assigning the tranches to share risks of default equally.
B) Not disclosing the risks clearly
C) Guaranteeing or protecting some tranches
D) Separating the mortgage portfolio into tranches and designating the A-1, A-2, and A-3 tranches last in order, after the M-1 to M-7 and B-1 to B-3 tranches, to suffer losses if a default occurred
E) All of the above
Correct Answer:
Verified
Q1: In simple terms, a mortgage-backed security is:
A)A
Q2: Some observers claim that the U.S.Federal Reserve
Q3: Mortgage-backed securities lost their value when:
A)The underlying
Q4: Late in 2008, the International Accounting Standards
Q5: A fundamental problem with Goldman Sachs' GSAMP
Q7: These regulators were aware of the problem
Q8: The 1999 Gramm-Leach-Bliley Act allowed banks to:
A)Engage
Q9: An issue with mark-to-market accounting when there
Q10: The 1933 Glass-Steagall Act precluded banks from:
A)Subprime
Q11: In simple terms, the securitization process is:
A)A
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents