At End of Crisis, It Was CDOs Buying CDOs, Says ProPublica

Financial Times blog FTAlphaville pulls out some of the juiciest bits from ProPublica's latest investigative piece about the house of cards that was Wall Street's CDO business. In mid-2006, as institutional investors became more wary of the riskiest mortgages on the banks' books, the banks simply created more CDOs to buy up those slices and repackage them, and then, eventually, different banks' CDO managers were buying risky slices from one another.