BANZAI7 NEWS--Citigroup Inc. sued a Morgan Stanley Inc. (MS) Friday for allegedly breaching a credit-default swap agreement covering a busted CDO issue, saying it is owed a shortfall of more than $245 million.
QUESTION: What good are these so called bespoke risk management tools if (a) Morgan Stanley refuses to make good on a valid obligation or (b) CITI is too dumb to realize its hedge is busted.
ANSWER: Commissions for originators and fees for lawyers who make a living arguing about swap agreements drafted by commission generating fools.
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