One of the Concerns About CDOs from the Very Beginning

question 46

True/False

One of the concerns about CDOs from the very beginning was that the CDO originator had no continuing link or responsibility to the mortgage.

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Definitions:

Stringent Rules

Strict and precise regulations or guidelines that must be followed, often used in contexts such as legal, financial, and quality control processes.

Manage Earnings

Tactics companies employ to influence their financial statements, often to meet forecasts or financial targets.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of accounting standards and procedures used in the United States to ensure financial information is consistent and transparent.

Agricultural Commodities

Agricultural commodities include products derived from farming such as grains, livestock, and other food products often traded in financial markets.