“Like many others I made the mistake of buying what I believed was ‘value,'” Mr. Gwin says, adding that investors who bought at the time believed the loans were worth more than their market price. “We did not contemplate having our first liens invalidated by a sitting president,” he adds.
It is incredibly disheartening to see the government continue to change the rules in the middle of the game. Initially, I thought that the problem was confined to the Treasury department in the final months of the Bush administration, but clearly this mentality has carried over and has perhaps even become worse. Koppl’s theory seems more prescient each day.