Ok it is not a movie, but it could be. The brilliant, amazing, beautiful Bethany Mclean wrote a detailed and insightful piece on these two agencies and more. Bethany and I have been friends for years, post Goldman, and I find it somewhat ironic that she is the one to write this incredible story. From 1990 to 2000 I traded agency mortgage-backed securities. I did not know 1/10th of what she wrote in this article. Most of the drama has occurred in the past 5 years and it blew my mind. For those of you who do not know Bethany she wrote “The Smartest Guys in the Room“-and effectively broke the story about ENRON while working at Fortune. She recently made a move to Vanity Fair where this piece appears. I just got it in my inbox thanks to Naked Capitalism. Anything this woman writes you should read!
When I wrote this piece on them I had no idea of the history that Bethany outlined. I did not realize that Paulson was such an early supporter. I wrote this piece the day they were taken over. I know it took Bethany months to put together the history she so vividly pieced together for our reading… thank you Bethany. I am left with this question – where do we go from here? They need to bring in some brilliant people that are not ‘insiders’. People that are brave and willing to speak truth to power. Their balance sheets need to be thoughtfully brought down and their mandate reviewed in a very public and accountable way. My gosh my gosh………..