Comment Re:Reason: Security (Score 1) 161
Yeah, because the main problem with Credit Default Swaps is that the pricing code used internally in banks wasn't distributed under an open source license, not (among other things) that the distribution of risk of default away from those making lending decisions encouraged those making the lending decisions to commit and encourage others to commit frauds which made the inputs into any pricing model unreliable.
The fact that every bank had it's own implementation of the pricing model was a problem - banks would trade these with each other because of the pricing differences that arose.
Of course this wasn't the only problem..
