UK Agency Has CDO Valuation Answer Key

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Taking their lead from the recently announced MBS fraud Senate panel, the UK's no-nonsense Serious Fraud Office is trying to answer the question of whether or not some CDO pitchmen knew their products weren't worth what they said they were. Undaunted by the warning of SFO director, Richard Alderman,that, "Some of them are incredibly complicated and they are sold by very, very clever people", the agency will seek to prove that certain bilateral agreement utilizing proprietary pricing models qualify as fraudlent. Hopefully the SFO will offer their services as omniscient valuation agent to issuers in the future to avoid these little misunderstandings from happening again.

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