Wednesday, November 17, 2010

Nobody is engaged in their life (Naked Capitalism)

GSAMP Trust 2006-FM1. In my youth, in the stone knives and bearskins days of underwritings, this sort of error would have been impossible, there were too many eyes on SEC filings (hat tip Michael F):

One of the filed versions of the prospectus for GSAMP Trust 2006-FM1 has the following clearly extraneous text at the bottom of the third to last page (as denoted by the markers)

Hi Michael on the GSAMP 2006-FM1 deal the Combined LTV including and excluding the silent seconds are not consitent on the termsheet you sent me. Can you clarify please

CLTV 81.37% FULL CLTV 89.04% with 19% Silent seconds?

on the termsheet I have shows LTV of 76.46% rather than 81.37% in the data. Could you double check? Should i resend?

that number has seconds at 20% LTV and the 81.37% has seconds at 100 LTv..see page A-27

As our source noted:
To me, the most significant implication of this embarrassing lapse is that nobody-not even the lawyers–was reading all the way through these documents before filing them on EDGAR. The email exchange also reveals that the originators were still squabbling about what the numbers were as the documents were being filed.

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