Here’s a good video from the Tech Ticker guys showing us that the opaque nature of asset-backed securities is catching up with Wall Street again. This is now becoming a problem in the credit card industry. Just as with mortgages, as banks have moved to a originate to syndicate model of credit creation, who actually owns and can enforce payment on the credit card assets is unclear.
Take a look.
In the next recession, this could be a very big issue yet again.