Our Sevices

The formulation of the simple Coop2Coop concept was inspired by the idea that the one billion members of the ICA, from various parts of the world, could deal directly with each other to form parts of a global economic entity.

The growing role of IT in the United States, pushing the concept of Derivatives as Financial Industry that creates Securitization Chain. Those who empowering the rise of the US financial industry. So that the year 1980 - 2007 the financial sector has consolidated into a few giant and the world, such as Citicorp, Lehman Brothers, Merrill Lynch, AIG, Goldman Sachs, JPMorgan Chase & Co., Bear Stream, Fannie Mae, Freddie Mac and others.

 

Securitization Chain is a new system that connects the trillions of dollars in mortgages and other loans to investors worldwide.

The success of the financial system makes the lender is not at risk if the borrower / buyer does not return home mortgage. But borrowers pay directly to investors.

 

The Mechanism:

 

In the old system, each borrower will repay the mortgage (mortgage payment) directly to creditors each month. And there is the risk to creditors.

 

In the new system, giving lenders sell mortgages on investment banks. Further Investment Bank combining thousands of mortgages and loans, including: Commercial Mortgages, Corporate Debt Buy-outs, Home Mortgages, Car Loan, Credit Card Debt and others. To create complex derivatives called debt or bonds known as CDO (Collateralized Debt Obligation), then the Investment Bank to sell them on to CDO investors. At that time, when homeowners want to pay the mortgage (mortgage payments) is no longer to creditors, but directly to investors from all over the world.

Thus, hundreds of billions of dollars a year, flows through a security chain, because whoever can obtain a home mortgage purchases, the impact of home prices in the US rose sharply. The result is the largest financial bubble occurred in history.

 

They started from the mortgage Real Estate, Real Estate because they think it's real. Because the asset can see the tangible assets. They can live in-their assets. They can rent their assets. Resulting in a huge explosion in the housing sector. The tastes of the financial sector, making everyone do it.

 

AIG, an American International Group, is a world's largest insurance company, in this case, become part of a chain of Securitization system. AIG's role is to buy and sell the CDO (Collateralized Debt Obligation), in the exchange of credit, known as CDS (Credit Default Swap). Credit exchange works like an insurance policy. An investor for protecting CDO of them, by paying to AIG every 4 months. If the CDO going to be bad, AIG promised to pay them. But this is unlike the ordinary insurance. Because, the speculators can also buy the credit exchange / CDS from AIG. To bet against the CDO, which they didn't have it.

 

Investment Bank will pay the grantor agency ratings (Rating Agency) to evaluate the CDO (Collateralized Debt Obligation) that, if the AAA or BBB and others.

 

The problem is many CREDITORS no longer care about the quality of the borrower's important how the pursuit of the target as much. So, at the beginning of the 2000s there was a big increase in the most malicious of loans / High Risk, called SUBPRIME. When thousands of subprime loans are combined to create a CDO (Collateralized Debt Obligation), many of those who still get AAA ratings.

Billions of co-operators use financial products, including credit cards, mortgages, and loans from bank or credit union, to lay the foundation for a better tomorrow for themselves and their families. These tools help bring shared aspirations within reach and empower countless individuals to earn a working capital, afford a tools, or expand business or market. Yet, irresponsible lending and deceptive practices pose serious risks to co-operators, and coop2coop's team remains committed to ensuring every co-operators has access to the information and resources that allow them to operate safely and smartly in the marketplace.
 

Coop2Coop is one of those resources, providing co-operators as consumers with information essential to making financial decisions on everything from purchasing and paying for business to securing and protecting one’s privacy when shopping online. We provide a practical guide for both the complex and the routine issues consumers encounter, and I encourage all co-operators to take advantage of this valuable portal..

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