3 ms·
> Actually, yes. There are laws regulating loans for the purchase of securities. Most jurisdiction ban lending for gambling. How is Wall Street exploiting them
by dahdum 4y ago
> Actually, yes. There are laws regulating loans for the purchase of securities. Most jurisdiction ban lending for gambling.
How is Wall Street exploiting them in this case? It sounds like they are committing some sort of fraud (perhaps even criminal?) against the lender by breaking the terms the loan by investing in speculative assets.
- JumpCrisscross 4y agoBroadly speaking, if a bank lends you money and knows or should have known you were going to use it to gamble or buy securities, the regulators will ding them. The borrower may separately be pursued for fraud. But this is a known failure mode when it comes to human emotions and magic numbers. Some sociopaths just found new lipstick for slot machines.
- oarabbus_ 4y agoYou keep claiming this, without providing evidence. Home equity loans and lines of credit can be and are used for investment purposes. It’s considered one of the worst ways to use home equity, but it’s absolutely legal for all parties involved