Who's At Fault for Too Much Risk?

David Merkel submits: I appreciated Steve Waldman’s article at his excellent blog Interfluidity, which was also posted at Naked Capitalism.  I have a slightly different take on the topic, which I expressed in the comments section of each blog: Steve, I think we had two, maybe three things go on here. First, the “originate to sell” model failed because basic underwriting was not done well. The incentives against failure were not left with the originator, i.e., having to hold onto a large equity piece.Complete Story »