Re:FDIC Takes over Silicon Valley Bank
by patmorgan23 on Friday March 10, 2023 @11:20PM
(#35105291)
The underlying problem in the 08 collapse was poor/non-existent underwriting of the mortgages and those loans being rated AAA when packaged in an MBS. When the economy slowed just a bit people started defaulting because originators were writing NINJ (No Income, No Job) loans, something that is illegal today.
This situation today has nothing to do with the failure of the MBS'S to payout like 08.
This situation today has nothing to do with the failure of the MBS'S to payout like 08.