Potential mini-disaster for wall-street banking firm.. — Totseans

Potential mini-disaster for wall-street banking firm..

edited August 2010 in Not in MY Forum
Okay, so I'm exchanging e-mails with a Korean who works in the IT department of a wall-street banking firm. There is a fucking crisis going on.

For all of the last year, a certain company has not sent out any of the confirmations for the TBA (To be allocated mortgages) blocks that they have been trading. These TBA blocks work as follows. Companies buy a "block" of TBA mortgages for a set amount of money. A company puts down X amount of money and with that, they buy mortgages. Later on, the location (Thus, the value) of those mortgages that were allocated to their TBA block is announced (Or some shit like that). When all is said and done, a document is sent from the seller to the buyer confirming the sale, making it legal and provable. Because this wall-street company that I am telling you about never sent any of these confirmations (And they have done billions and billions of dollars in TBA trades), if any of the holders of those TBAs find out that it would suit them financially to back out, they would be able to, as this company never confirmed.

Most of these TBAs were bought from the FNMA and GNMA and sold to companies and investors all around the world. The implications of this fuck up could be severe. If word gets out that this company hasn't sent out the confirmations, an enormous shitstorm will be incurred, resulting not only in a financial disaster for a certain part of the industry, but in the revocation of trading rights by FINRA of the company I have been telling you about.

I'm too worried about the possible consequences (Because there would be consequences if I caused the collapse of this fucking company and got caught) of releasing the name of the company I've been talking about, as the company clearly states that e-mails are confidential and shit, and that the higher-ups in the company have personally ordered that "no terms specifically relating to the crisis be included in e-mails." Employees are using codewords over there, sticking to the phones and shredding papers (LOL). This seems to be serious business.

This is vague enough that nobody will be able to deduce the name of the company , but specific enough that if the shit does hit the fan and the story does break, you'll know you heard it here first.
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