I just finished watching Inside Job, a documentary about what caused the financial crisis of 2008.

I first learned about Mortgage Backed Securities when I developed a course for Fannie Mae in the 1990’s.  And then came across the concept again when I developed training for the FDIC just prior to 2000.  What has always struck me as odd is the inability of subject matter experts to clearly describe what Mortgage Backed Securities are and how derivatives work.  It begs the question…

If these regulators didn’t understand them, how could they possibly be regulating them?

What I really don’t understand is why the executives that allowed this to happen have not been prosecuted.  At the very least, why haven’t their assets been seized?

Why do Angelo Mozilo and Richard Fuld get to keep their ill-gotten gains?

This says it all…