Mr. Doherty says that in reaction to widespread securitization, insurers most likely would have to raise the premiums on new life policies.

“It’s bittersweet,” said James D. Cox, a professor of corporate and securities law at Duke University. “The sweet part is there are investors interested in exotic products created by underwriters who make large fees and rating agencies who then get paid to confer ratings. The bitter part is it’s a return to the good old days.”

You know, they used something like this as a plot device on the TV show Leverage… as a quick & easy way to tell the audience "this character is a SCUMBAG and has NO REDEEMING VALUE". Looks like Hollywood scriptwriters have a clearer understanding of what's ethically questionable than investment bankers do.