Two key lessons from the lengthy details of two mortgage securities-related regulatory settlements seen in the past week boil down to this first, don’t leave anything out and secondly, stick to the facts.

I'm no regulator or attorney, but when I read about, say, SEC allegations that some sell-side entity or entities had structured and marketed a synthetic collateralized debt obligation without informing investors a hedge fund helped select the assets in a mortgage-related CDO portfolio and had a short position in more than half of those assets, my opinion is—if that’s true—you really do have to mention that somewhere to investors before you sell them those instruments.

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