Quote:
Originally Posted by David70
They used inflated numbers in the process of issuing new bonds. Bonds are not profit but instead a way to raise money that is later repaid to the person that buys the bond. They still have to pay them back, they just get better terms/rates by showing better business numbers.
Extremely similar to you telling your bank your income was higher than it really was to get a better rate on your $200k home loan. As an example, you get a 3% rate instead of 4%. The $200k loan is not profit, the lower rate saves you a small part of the loan. Wouldn't make sense to give you a penalty anywhere close to $200k because of the slightly better rate you got.
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Of course the kicker is that you personally (ex, Michael Cohen) could go to federal prison whereas a company just pays a fine.
