*   The following news is worth my effort to copy its whole content here for your big laughing and then keep  go on reading my comment on it if you want. 

UPDATE 1-Mistakes made during credit crunch, bankers say

By Clara Ferreira-Marques and Steve Slater

LONDON, Dec 4 (Reuters) - Top executives from four of the world's biggest banks told British lawmakers on Tuesday that errors were made during the recent credit-market crunch but said they had not been reckless or failed to tell clients of risks.

"Mistakes were made, there's no question about that," Gerald Corrigan, managing director and co-chair of risk at Goldman Sachs (GS.N: Quote, Profile , Research), told the cross-party parliamentary committee.

"But it's also true that conditions that materialised, especially in the subprime mortgage market, are by any standards quite extraordinary."

Corrigan and executives from Citigroup (C.N: Quote, Profile , Research), Deutsche Bank (DBKGn.DE: Quote, Profile , Research) and UBS (UBSN.VX: Quote, Profile , Research) were accused by parliamentarians of losing sight of risks, of failing to do enough to explain complex products to investors and of acting recklessly -- particularly in the sale of structured credit products.

In a heated hearing lasting over an hour -- part of an inquiry into financial stability and credit market turmoil -- lawmakers said banks had created complex financial instruments that meant the mis-selling of home loans in Chicago could result in the near collapse of British bank Northern Rock (NRK.L: Quote, Profile , Research).

The four banks acknowledged that the search for higher yields during a period of low interest rates had boosted the demand for more complex and sophisticated investment products -- and strengthened the interdependence of instruments and markets.  

"It's inevitable that when markets are strong and booming there's a natural aversion to being the first one into a market and the last one out. That's a fact of life,"Corrigan said.     [p.s.   Sounds familiar to you?  Sure, it's also inevitable and natural for a person to put zero down and pay lower payment to bite a unaffordable house to chew.] 

But all four dismissed accusations that investors -- particularly those investing in collateralised debt obligations (CDOs) and other complex instruments -- were not told of the risks or given enough information to understand the products.

"The end-buyers of these complex instruments were sophisticated institutions," William Mills, head of Citigroup's markets and banking in Europe, Middle East and Africa, said.    [p.s  Now you know who is also a real victim?  A breed with sophistication, not those regular Joe.  Are they supposed to be a licenced financial adviser?  No wonder there is a "dart theory" in stock profession.]

In the end, however, some investors still proved not to be sophisticated enough: "It is not clear that investors fully understood what they were buying," Charles Aldington, chairman of Deutsche Bank London, said.

LEARNING THE LESSONS

Corrigan and Mills acknowledged the reputation of banks had been hit by the market turmoil, which was sparked by a U.S. housing market downturn and spilled over to other products.

Only one of the four banks testifying on Tuesday -- Goldman -- said explicitly it expected to make a profit over the length of its involvement in the subprime market since the market took off around 2003, thanks to its hedging and its more cautious stance on the subprime sector from earlier this year.  

But Goldman's Corrigan said banks and regulators now needed to strengthen "shock absorbers" in the system, adding that some types of structured products would "go the way of the dinosaurs".          [p.s.  Gosh! who invented those genii and released them from the lamp?  Sure the poor VSP folks are not in the position and not so competent.   How about them?  Those Wall Street cats are not incompetent too?]

Asked to qualify how long the credit market troubles would last, one banker said he expected a better 2008.

"The start of the New Year always has its own effect," Deutsche Bank's Aldington told the committee. "We should see this settling down in the first half of next year."

Thursday's wide-ranging committee hearing also included the questioning of Northern Rock's auditors, PricewaterhouseCoopers, who said they had not failed in their statutory duty and brushed off criticism over fees received for "comfort letters" written for Northern Rock ahead of securitisation deals.    [p.s Now you know why I say the best jobs is an attorney or CPA who get paid no matter what happens.  Their works are absolutely with no guarantee whatever, even they lost your case in court or IRS, not like others such as an agent with whole bunch liabilities or a builder with one year construction warranty.]

"You've audited and provided comfort to the biggest banking disaster in nearly 150 years," parliamentarian Michael Fallon told the auditors. (Reporting by Clara Ferreira-Marques, Richard Barley and Steve Slater; Editing by Quentin Bryar and Matthew Tostevin)

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My Comment:

Believe me, it is nobody's fault as they said.  It is a mistake caused by a human nature to better his profit (is it greedy?).  It is a mistake of the capitalist market mechanism.    

Just like our stock investors in Taipei, they went out to enjoy pub, Japanese shushi bar, diamond, Chinese mistress, overseas vacation and many luxury stuffs when they made money.  However, when they lose money, they are crying so loud to blame everyone (except themselves), particularly the recent Abien administration and to further have their hands out for governmental bail out.  Same old shit no matter where it is!

Now you know what they want out of the turmoil they created: to make a profit.  How can they do it:  by accusing USA housing downturn set the forest fire as the cause (the scapegoat, not the real cause SIV) and trying to keep housing price up there in the sky.

After reading those government's state funds, including MA, FL, MT, (King County) WA, (Orange County) CA, are losing its investment value in SIV, I know the real problem or concern no longer rests on those subprime loan home owners.  It is something else for some people to rush out for Rolaid who may not have control over those fund such as the Florida governor Bush.

Now, let's sit and relax to enjoy those big guys playing game in the name of Jesus A Man (sorry, a typo here, it should be) poor victim home owner Joe, but at the expense of a regular Joe, indeed. 

God bless America!