Jim Sinclair states that a major international auditing firm is currently involved in an emergency Wall St. project with over 900 consultants calculating valuations for a ‘suddenly devaluing portfolio of CDO’s’.
Perhaps Jamie is having trouble unwinding The Whale’s IG9 tranche?
From Jim Sinclair:
There is a big problem brewing again in the OTC derivative market.
A major international financial auditing firm is currently involved in a massive project on Wall Street that presently has over 900+ consultants involved, which is massive and beyond even the size/scope of the Fannie Mae restatement several years ago.
They’re grabbing any senior financial analyst and software expert that they can to help this “unnamed” major Wall Street bank calculate valuations for a suddenly devaluing portfolio of Credit Default Obligations that they have heavily invested in.
This auditing firm is charging nearly double their normal billing rate and is getting it, no questions asked.
With both The Morgue and Morgan Stanley receiving 2 notch downgrades Thursday, we’ll let our readers speculate on which of the two TBTF’s Sinclair is referencing.