Thursday, May 22, 2008

Everyone Knew

Citigroup Inc. created a $2.5 billion mortgage-backed security called Bonifacius Ltd. in August as capital markets seized up and panic swept Wall Street.

The issue took the name of a general, called by historian Edward Gibbon the ``last of the Romans,'' who fought and died for a fading empire. The bonds were created from subprime home loans as demand evaporated. Within six months, Bonifacius collapsed as homeowners fell behind on their payments in record numbers.

2 Comments:

Blogger Scantron said...

Cutting and pasting ledes from Bloomberg articles can be fun!

1:28 AM  
Blogger John Liberty said...

Asian stocks fell this week, dragging the benchmark index to its biggest weekly decline in three months, on concern widening credit losses and rising fuel costs will hurt company earnings.

8:47 PM  

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