The Securities and Exchange Commission started questioning Wall Street's practice of packaging mortgages into bonds as early as 2006, according to recently released documents. SEC officials wrote that collateralized debt obligations linked to mortgages exposed financial institutions to possible write-downs. "This risk is difficult to measure and hence to manage," according to a memo dated Feb. 1, 2006. The Financial Crisis Inquiry Commission released the document as it looks into Bear Stearns' collapse.
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