Mizuho $7 Billion Loss Turned on Toxic Aardvark Made in America – Bloomberg.com
Rekeda, who became head of structured credit in the Americas, and his team led Mizuho into a business it knew little about, securities backed by U.S. subprime mortgages, where it lost 672 billion yen ($7.1 billion), more than any bank in Asia. Most of the losses were related to defaults on collateralized debt obligations.
“Mizuho never made a penny out of subprime in the good times, they just got left holding the can in the bad,” says David Threadgold, an analyst at Fox-Pitt Kelton Asia Ltd. in Tokyo who has an “underperform” rating on the stock. “They made a very poor decision to launch into the packaging of subprime products at the end of 2006.”
via Mizuho $7 Billion Loss Turned on Toxic Aardvark Made in America – Bloomberg.com.
Very interesting, thanks