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Friday, February 22, 2008

Wall Street always a Winner

According to stories, there has been a major failure of the auction rate securities market. As a result, entities like the The Long Island Power Authority are moving to refinance debt with longer-term issues. What isn't mentioned, every time they refinance, a Wall Street investment bank collects more fees. Every time a client loses, they make more money from fees. Every time a client wins, they make more money from fees. Great business model.

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