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 these are correct.
Correct Answer:
Verified
Q3: Which entities worked as second party consolidators,
Q4: According to former Federal Reserve Chairman Alan
Q5: Some observers claim that the U.S. Federal
Q6: Rating agencies were exposed to a conflict
Q7: In simple terms, the securitization process is
A)
Q9: Early in 2008, mark-to-market accounting provisions caused
Q11: Mark-to-market accounting is usually related to all
Q12: A fundamental problem with Goldman Sachs' GSAMP
Q13: Mortgage-backed securities lost their value when
A) the
Q15: The 1999 Gramm-Leach-Bliley Act allowed banks to:
A)engage
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