Dear Mr. Buffett_ What an Investor Learns 1,269 Miles From Wall Street - Janet M. Tavakoli [127]
19 Huw Jones,“IMF sticks by $1 trillion U.S. subprime fallout,” Reuters, 16 July 2008.
20 Warren Buffett to Janet Tavakoli, private conversation, 10 January 2008.
21 Benjamin Graham, The Intelligent Investor (New York: Harper & Row, 1973), 300.
Chapter 7: Financial Astrology: AAA Falling Stars
1 Based on data from Berkshire Hathaway annual reports for 2002 to 2007.
2 Aline van Duyn and Francesco Guerrera, “Wall St. Banks Face $10bn Cost,” Financial Times, 11 June 2008.
3 Jo Johnson,“Questions Raised over Fitch’s Credibility,” FinancialTimes, 20 July 2003.
4 Ibid.
5 Warren Buffett, memo dated September 27, 2006, Financial Times 9 October 2008.
6 Ibid.
7 Arturo Cifuentes, “CDOs and Their Ratings: Chronicle of a Foretold Disaster,” Total Securitization, 4 June 2007.
8 Charles Bachelor,“Agencies Under Fresh Pressure on Rating Worth” Financial Times, 23 December 2003.
9 Ibid.
10 Janet Tavakoli, “Investors Are the Gullible Ones if They Rely on Ratings as Indicators of Financial Robustness,” Financial Times, 29 December 2003; and Janet Tavakoli, Collateralized Debt Obligations & Structured Finance (Hoboken, N.J.: John Wiley & Sons, 2008), 386-388.
11 Paul J Davies, “Questions Lie Behind CPDO Hype,” Financial Times, 14 November 2006.
12 Sam Jones, Gillian Tett and Paul J. Davies, “Moody’s Error Gave Top Ratings to Debt Products,” Financial Times, 20 May 2008.
13 Ibid.
14 Karen Richardson, Kara Scannell, and Aaron Lucchetti, “The Hits Keep on Coming at Moody’s,” Wall Street Journal (Deal Journal), 23 May 2008.
15 Neil Unmack, “CPDO Investors May Lose 90% as ABN Funds Unwind,” Bloomberg News, 25 January 2008.
16 Aline van Duyn and Joanna Chung, “S&P Discloses Errors in Rating Models,” Financial Times, 13 June 2008.
17 Gyan Sinha and Karan Chabba, “Sell on the Rumor, Buy on the News,” Bear Stearns, 12 February 2007.
18 Janet Tavakoli, “Comments on SEC Proposed Rules on Rating Agencies,” 13 February 2007.
19 “Fed & Sub-Prime Loans,” CNBC, 20 February, 2007. Segement with Susan Bies, Steve Liesman, and Gyan Sinha.
20 Bethany McLean, “The Dangers of Investing in Subprime Debt,” Fortune, 19 March 2008.
21 Ibid.
22 Mark Pittman, “Moody’s, S&P Defer Cuts on AAA Subprime, Hiding Loss,” Bloomberg News, 11 March 2008.
23 Eric Gelman, “Fear of a Black Swan,” Fortune, 14 April 2008.
24 Benjamin Graham, The Intelligent Investor (New York: Harper & Row, 1973), 110.
25 Ibid. 98.
26 Craig Karmin, “Springfield, Mass., Takes Aim at Merrill over Subprime Losses,” Wall Street Journal, 19 January 2008.
27 Vickie Tillman, “The Truth about Triple-A Ratings,” Financial Times, 20 March 2008.
28 Aaron Lucchetti, “S&P Email: ‘We Should Not Be Rating It’,” Wall Street Journal, 2 August 2008.
29 David Scheer and Karen Freifeld, “Citigroup to Unfreeze $29.5 Billion of Auction Debt,” Bloomberg News, 7 August 2008.
30 Karen Freifeld and Michael McDonald, “Morgan, JPMorgan Settle Auction-Rate Probe, Pay Fines,” Bloomberg News 14 August, 2008.
31 Robert Frank and Liz Rappaport, “Big Boys Face ‘Auction’ Monster Alone: Settlement Excludes 4Kids, Other firms; Battle with Lehman” 29 August 2008.
32 Karen Richardson, Kara Scannell, and Aaron Lucchetti, “The Hits Keep on Coming at Moody’s.”
Chapter 8: Bear Market (I’d Like a Review of the Bidding)
1 “U.S. Housing and the Gamble of Subprime Loans,” CNBC 30 January 2007. Segment with Diana Olick, Jim Melcher, and Janet Tavakoli.
2 David Evans, “Florida Got Lehman Help Before Run on School’s Funds,” Bloomberg News, 18 December 2007. This article gives a subprime chronicle of events in 2007 including information on New Century and HSBC.
3 Gyan Sinha and Karan Chabba, “Sell on the Rumor, Buy on the News,” Bear Stearns, 12 February 2007.
4 Steven Church and Bradley Keoun, “ResMae Collapse May Signal More Subprime Bankruptcies,” Bloomberg News, 23 February 2007.
5 Gretchen Morgenson, “Crisis Looms in Mortgages,” New York Times, 11 March 2007.
6 Randall Smith and Susan Pulliam, “As Funds Leverage Up, Fears of Reckoning Rise,