The hedge fund Magnetar helped create billions of dollars’ worth of collateralized debt obligations that super-charged the financial meltdown, profited the company enormously and for which it’s seen no punishment. Here’s a roundup of the known charges, settlements, and investigations that stem from those deals.
U.S. and European markets played follow the leader Friday, as the three main stock indexes in both regions tumbled nearly 3 percent together. Among other events, analysts pointed fingers at the euro, uncertainty over President Obama’s jobs speech and doubt over Greece’s ability to address its financial problems.
Two seemingly—but not actually—contradictory things must be understood to grasp the meaning of the anger and excitement over Standard & Poor’s downgrade of U.S. government debt, says Paul Krugman. (more)