Facebook BEGS General Motors for a SECOND CHANCE, and 3 Stocks on Trader Radars Now
According to documents unsealed in a lawsuit filed in 2008 by Abu Dhabi Commercial Bank, Morgan Stanley (NYSE:MS) managed to persuade ratings agencies S&P (NYSE:MHP) and Moody’s (NYSE:MCO) to give investment grade ratings to a $23 billion package of securities secured by sub-prime mortgages reportedly by using the same volatility assumptions for subprime-backed mortgage securities as for those that had prime home loans as collateral.“We in fact built everything,” said an executive for New York-based Morgan Stanley, according to the documents, allegedly referring to the risk-analysis methods applied in the appraisals.
Don’t Miss: Have Facebook and GM Kissed and Made Up?
Notwithstanding the advertising snub Facebook (NASDAQ:FB) received at the hands of GM (NYSE:GM) on the eve of its IPO, its COO Sheryl Sandberg reportedly approached GM CEO Daniel Akerson to convince him that advertising on Facebook could yield better returns with more sophisticated use of data.
Don’t Miss: Apple Loses KEY Battle, But Will It Win the WAR?