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Neither Bear, Lehman nor Goldman 'make' loans. They created CDOs,CDSs,MBSs and sold them to other credited investors.
by mlrtime 9y ago
Neither Bear, Lehman nor Goldman 'make' loans. They created CDOs,CDSs,MBSs and sold them to other credited investors.
- soVeryTired 9y agoYeah, 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.