Five industry professionals tell the FT it is commonplace for risk modellers to be asked to change analysis in order to artificially lower prices
I also note that this includes stuff like states suing independent risk estimators
Five industry professionals tell the FT it is commonplace for risk modellers to be asked to change analysis in order to artificially lower prices
I also note that this includes stuff like states suing independent risk estimators
This is making the opposite point. Capitalism should stop this, banks and homeowners should be the ones suing over this instead of the states.
These fraudulent risk assessments should theoretically be putting massive investments at huge risk, but no one cares because in the end they know they’ll get bailed out by the insurer of last resort (the state).