Re:My 10-Year Odyssey Through America’s Housing Crisis
by mlrtime on Monday April 16, 2018 @08:43AM
(#16848519)
Neither Bear, Lehman nor Goldman 'make' loans. They created CDOs,CDSs,MBSs and sold them to other credited investors.
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Re:My 10-Year Odyssey Through America’s Housing Crisis
by soVeryTired on Monday April 16, 2018 @08:45AM
(#16848532)
Yeah, fine - that's a simplification. They bought third parties' loan books and securitised them. But it was that flow of money that encouraged the bad lending practices. If you know you can make a crappy loan and sell it on to Goldman for a profit, you'll make the loan.