Just to be clear, when we get those loans with all the heavy lifting here, we're over a 90 percent approval, meaning 90 percent of the people who go through this program that we actually underwrite the loans. Then they go through counseling to understand their monthly budget and ensure they can afford the mortgage payment. The loans are or year fixed with interest rates below market, about 4. Then they undergo budget counseling to ensure they can afford the mortgage.
Alexis Stenfors discusses his new book, which recounts his experiences as a rogue trader.
He recounts his experiences in a new book, Barometer of Fear: Stenfors is now a senior lecturer in economics and finance at the University of Portsmouth in England.
An edited transcript of the conversation follows. In your role now in the teaching profession, what do your students ask you about your time as a rogue trader?
When I normally start off the first lecture or the first seminar during the new year, I introduce myself and briefly go over the period. I think most people are really afraid to ask, so I have to break the ice myself.
I read an article in which you talked about your experience and what you went through during that time. You alluded that you could be tempted to go back. Technically speaking, I could apply for a license again because I got a five-year ban from the industry that was lifted a year and a half ago.
I write about it. Is that like being a gambler and being addicted to it? For me at least. I was very addicted to risk-taking, and I took a lot of risks within Merrill Lynch.
Merrill Lynch was a big risk-taking bank at the time. The market as a whole took way too much risk in the run up to the financial crisis and during the financial crisis. The title of the book probably has two meanings.
One is the barometer of fear, which was coined by Alan Greenspan, the former Fed chairman. Technically speaking, you could buy and sell the fear, which was exactly what I did because I traded LIBOR index derivatives most of the time.
They were very linked to the fear people had about the global banking system, so I personally, on behalf of the bank, betted on a worsening of the crisis.
The more the crisis, the more severe it became, the more money I made on behalf of the bank. Of course, morally now looking back, that is very difficult to consider if this is the right thing to do.
All of this also leads to a lot of fear because there are personal aspects of people that come up to you that say horrible things, and justifiably so. I had to deal with my own guilt, and I still deal with my own guilt, of having caused these losses.
It had an impact on your family, your wife and kids as well. Knowledge Wharton High School Stenfors: It was eight years ago when that happened. I wrote down a few sentences on a hotel notepad. It started off as a memoir to my daughters and gradually became something much more serious and thought through.
Talk about that period when you first realized the trouble that you could be in. When I had the conversation with my boss in which I admitted it, I was in India and he was in Switzerland. You have to fly back home. I began to have doubts.
I want to be open about this.Mar 25, · The Next Financial Meltdown. The day of reckoning is at hand. Steve Kroft tells us what we need to know about the looming financial crisis . A decade after meltdown, largest banks even bigger. Even with the economy roaring this year, 62 percent of Americans say the country is heading in the wrong direction.
meltdown,” came to the public’s attention when a steep rise in home foreclosures in spiraled seemingly out of control in , triggering a national financial crisis that went global within the year. Financial Meltdown of A Multi-Vehicle Pileup On An Icy Expressway The dangerous expressway, also a long time in the making, is the financial system.
|Post new comment||Subprime mortgage crisis The s were the decade of subprime borrowers; no longer was this a segment left to fringe lenders. The relaxing of credit lending standards by investment banks and commercial banks drove this about-face.|
|Citing [email protected]||While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.|
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The icy surface going wrong in the period leading up to the crisis. each incident, each vehicle in the crash, was impacted. Could the U.S. and the rest of the world be headed for a dire financial crisis We’ve been saying for years that we believe the period of is the start of an overwhelming financial crisis, possibly much worse than the / stock market collapse, and the / credit crisis.
appears to be the peak of the financial. A new project from the Center for Public Integrity takes a closer look at the global economic meltdown, and the 25 lenders responsible for the majority of high-interest or subprime loans from , “a period that marks the peak and collapse of the subprime boom.” CPI’s analysis found that.