That's what a JP Morgan managing director said about American Business Financial Services (ABFS) in February 2003. He went on, "A lot continues to rest on the willingness of subordinated debt investors to roll over their notes." These "investors" were mainly old folks who were somehow convinced of the soundness of ABFS, which went belly up in 2005 losing some $600,000,000.
A Morgan Stanley managing director forecast a PR nightmare by dealing with ABFS. Others at these two firms raised doubts about ABFS yet they made sure that the company would continue to deal in subordinated debt; in 2002 JP granted credit to the company only if the compamy maintained $375,000,000 in subordinated debt. Credit Suisse signed a similar agreement. Why do you suppose that JP and Credit Suisse force ABFS to continue to peddle crap? Do you suppose greed made them do it?
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