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Many banks don't keep the loans they approve on their own books. That is dirty, dirty business. Giving out loans that will never be paid back, bundling them up
by Kenji 10y ago
Many banks don't keep the loans they approve on their own books.
That is dirty, dirty business. Giving out loans that will never be paid back, bundling them up and selling an opaque package full of risks. They said that was a big part of what started the crisis. I'm glad I wasn't part of that.
- grzm 10y agoYup. I completely agree. And there were a lot of steps in the chain. As I understand it, it wasn't the issuing banks that were doing the bundling: they just sold the loans to other financial service companies. Given the amount of money and the fact that a lot of them effectively got away with it, from their point of view it was good business. This is an example of situations where I see arguments along the lines of "it was legal, so it wasn't wrong". Grr...