It's "SPV", and sometimes referred to as "SVO", dumbass.<quoted text> SPEs are utilized by corporation to isolate debt & risks in order to protect the main corporation from liability. There is nothing shady about them if used properly.
And, you are so fucking wrong.
A "Special Purpose Vehicle" was specifically a company established in a foreign country for the mother company to "sell" the worthless mortgages to and get the individual mortgages off their books. Then the "Special Purpose Vehicle" would bundle these worthless mortgages into a traunch and "sell" it back to the mother company. The end result would be the mother company would have only the single traunch in their books instead of the individual worthless mortgages.
Now that you know what a "Special Purpose Vehicle" is, how about you explain to us how using them made it easy to have a fraudulent rating given to it so investors wouldn't know it was nothing more than a bunch of worthless CRA mortgages.
Then, you can explain to us why all questioning of Ben Bernanke immediately ceased when he uttered the words "Special Purpose Vehicle" when he was testifying before Barney Frank's committee.