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If someone issues you a loan in good faith, and you cannot repay, it is indeed their loss. They have not committed crime however. What I said is that it is a c
by gtrubetskoy 14y ago
If someone issues you a loan in good faith, and you cannot repay, it is indeed their loss. They have not committed crime however.
What I said is that it is a crime if at the time of issuance the lender has reasons to believe you cannot repay the loan. That is a crime, and that is a form of extortion (or loan sharking).
- JackFr 14y agoNo. People who misrepresented themselves engaged in fraud. There is no requirement for the bank to assume bad faith on the part of the lender. If a bank made a loan to someone who could not repay it, they are likely to take a loss. The fraud, where it happened, was when the bank sold this loan. At that point, the idea of 'willful blindness' and 'prudent man' came into play, when banks materially misrepresented the loans they were selling as having been prudently underwritten. But the victim was the buyer of the loan, not the borrower.