Yiu, who will be trading mortgage derivatives
, has previously worked at Deutsche Bank for nine years.
The $590,000 increase in net gains on sales of loans and other mortgage banking income was primarily due to a $328,000 gain on sales of SBA loans during 2015, as well as an increase of $331,000 in the fair value of mortgage derivatives
, commitments to sell loans and loans held for sale.
Credit Suisse was not gutted by the 2008 crash, unlike UBS, which lost $50 billion in failed bets on toxic credit and mortgage derivatives
on Wall Street.
The first securitized mortgage derivatives
(also called collateralized debt obligations, or CDOs) were invented by a team at investment bank J.P.
Ginsberg previously served as managing director on the mortgage-backed securities trading desk at Sandler, O'Neill + Partners L.P., where he structured and traded new-issue CMOs and mortgage derivatives
for the firm.
"You should not hang all the people making financial models, though they did play a part in people valuing mortgage derivatives
in a naive way," said Derman, adding that people at respectable firms on Wall Street generally do understand the limitations of models and their proper use.
Certain of my complaints about government bailouts and limitless credit enjoyed by big business were maybe prescient, but were too scandalized to impress anyone living now in the era of mortgage derivatives
and hedge fund skullduggery.
20, 2010, which allows both foreign and domestic corporations to spend unlimited amounts from their general treasuries on political campaigns, is an insurmountable obstacle to addressing problems such as the mortgage derivatives
crisis and the economic collapse.
In addition, ISDA notes that credit losses were positively affected by actions of the Fed with respect to AIG, which prevented increased losses across several business lines, including mortgage derivatives
products, and, potentially, cascading defaults from other counterparties not involved with mortgage derivatives
Financial disasters such as Enron, WorldCom, the subprime mortgage derivatives
crisis, and the Madoff Ponzi scam also belong to the same class.
Ratings agencies' credibility is still tarnished by their handling of sub-prime mortgage derivatives
and the collapse of Lehman Brothers in 2008, so some governments may look the other way if agencies get tougher on sovereign debt.