So That's Operational Risk! (How operational risk in mortgage-backed securities almost destroyed the world?s financial markets and what we can do about it)

We describe the economic crisis that began in the U.S. mortgage market in late 2006 as a consequence of cascading operational failures linked to the securitization process. Operational risks including mortgage fraud, negligent underwriting standards and failed due diligence combined with modern finance to initiate a nearly catastrophic crisis in financial markets and a painful recession.