Financial Leverage and the Collapse of Sowood Capital
Submitted by PhilR (bestcashcow.com)
The collapse of Sowood Capital is a good example of the perils of leverage.

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Related Tags: Real, Credit default swaps, Finance, Financial leverage, Mutual funds, Estate, Short selling, Housing, Hedge funds, Hedge fund industry, Sowood capital, Naked shorting.
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What really caused the magnitude of the current financial crisis, in my opinion, was the amount leverage used in the housing market and mortgage backed securities derived from it. Leverage is a...
The collapse of Sowood Capital is a good example of the perils of leverage.
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Type
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Top APY/Rate
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Institution
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2.51%
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Everbank
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0.38%
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W&R Advisors
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1.65%
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TotalBank
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1.65%
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The Jacksonville Bank
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2.25%
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Academy Bank / The Jacksonville Bank
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2.25%
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Security Savings Bank
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2.60%
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The Jacksonville Bank
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3.00%
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Flagstar Bank / Hudson City Bank
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3.25% |
FlagStar Bank / Hudson City Bank |
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3.50%
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Acacia Bank
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3.36%
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US Treasury
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4.51% |
Bank of the Sierra |
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1.64%
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Northrop Grumman CU
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2.30%
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Alliant CU
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2.55%
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Alliant CU
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3.00%
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Alliant CU
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0.09%
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Various brokerages
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0.14%
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Various brokerages
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0.91%
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Various brokerages
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2.35%
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Various brokerages
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3.47%
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Various brokerages
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