Ranieri's firm shut down

Well some of you might find some poetic justice in this: Lewis Ranieri, a one-time famous Salomon Bros. employee (made famous in Michael Lewis's Liar's Poker) and a towering figure in mortgage-backed universe, has just been forced to shut down the bank he formed after leaving Salomon Bros., the Financial Times notes. It would have been incredibly ironic if the bank was shuttered due to MBS concerns. As it turns out, Ranieri was said to have pushed the bank to avoid subprime exposure. Still, it's ironic enough that the bank was pressured by real estate construction loans. Franklin Bank will continue operating as part of Prosperity Bank of El Campo, TX.

For more:
- here's the FT item

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