Much like with the housing crisis that caused the financial crisis of 2008, the fracking boom has led to Wall Street bankers finding innovative ways to finance a money-losing endeavor. Some companies are now even selling bonds based on future well performance, a concept similar to the mortgage-backed securities that led to the 2008 housing crisis.
Source – desmogblog.com
– “…They are called blank check companies because the management is given a blank check to buy whatever they choose. In the 1980s, the Wall Street Journal (WSJ) noted that “blank-check companies were often associated with penny-stock frauds.” In a 2017 article on the oil industry, the WSJ reported that “SPACs were a hallmark of the frothy days before the financial crisis [of 2008]”
Is the U.S. Fracking Boom Based on Fraud? – By Justin Mikulka
In a 2016 interview with Fraud Magazine, former Enron CFO Andrew Fastow explained what he thought made him so successful while at the former energy corporation that’s now infamous for financial scandal.
“I think my ability to do structured financing, to finance things off-balance sheet and to find ways to manipulate financial statements — there’s no nice way to say it. Like I said at the conference, I was good at…
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The Most Revolutionary Act 