John Key was working for banks who were at the forefront of those who developed these fantastic new financial innovations.
He worked for the Bankers Trust; one of the first banks that started to experiment with these funky new “securitized investment vehicles”.
In fact while working for Merrill Lynch he worked for a while as the head of the European bonds and derivatives department. Ching, ching, those are the very products that are causing the worlds financial system to collapse and that puts him right in the middle of the biggest financial scam in history. Also see here.
If you think that he could not have been part of it because he lived and worked in London, think again, he himself told during a a speech on 11 September 2007 to the United states/New Zealand forum that he had lived off and on for 6 years in New York. He even lost two of the people he hired personally in the attacks.
According to his colleagues John Key was a real leader “Key rallied his team in London around him and kept them inspired enough to stay at the bank rather than bolting for the door”. That does not sound like a guy who is a naive and passive manager, but a man who knows what makes his team tick: Money or the promise of it in the future. This is a man who knows what is going to happen in the future, and what is happening in the banking world.
In fact from 1999 until his departure in march 2001 he was one of only four close advisers to the Federal Reserve and Alan Greenspan who is now generally seen as mainly responsible for the current financial collapse.
That is pretty high up in the banking food chain.
Merrill Lynch is now one of the banks under investigation for the role it played in the subprime losses. I wouldn’t mind putting a few questions to Mr. Key himself, wouldn’t you?
Like to whom those “asset backed junk bond” where sold to?
I wouldn’t be suprized if they have ended up with those mum and pop finance companies. Promised good returns and save investments by those nice honest bankers who just wanted mom and pop to have a safe little nest egg.
WASHINGTON: Over the past two decades, few industries have lobbied more ferociously or effectively than banks to get the government out of its business and to obtain freer rein for “financial innovation.”
But as losses from bad mortgages and mortgage-backed securities climb past $200 billion, talk among banking executives about a major government rescue plan is suddenly coming into fashion.
A confidential proposal that Bank of America circulated earlier this month to members of Congress provides a stunning glimpse of how quickly the industry has reversed its laissez-faire disdain for second-guessing by the government, now that it is in trouble.
The proposal warns that as much as $739 billion in mortgages is at “moderate to high risk” of default over the next five years and that millions of families could lose their homes.