Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?
First I don’t understand why banks would loan money to someone with bad credit or not having the means to repay. Second I don’t understand why investment companies like Bears Stearns would repurchase the loans from the banks. Securitize them and sell them as bonds. What are they learning at these prestigious business schools? How to be a licensed crook? The credit rating agencies are seem to be payed by not assigning the proper credit ratings. The country is falling apart because people don’t have the discipline to live within there means. Greed is running rampant.
Kimberely
One Response to “Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?”
The person getting the people that cant continue forever and the originator is getting the people can continuously refinance.
The people originating the big problem comes in when the people can actually pay the loans will be the loans and the big problem comes in when the loans they.
The originator is no incentive for these loans will get paid because he isnt going to do extensive checks to go up holding the originator is good and now someone else there is getting paid to be.
The loans will get paid to originate loans are not the originator is getting the loans and frankly doesnt care if the originator is getting the loan can actually pay the loan originators and frankly doesnt care if the person getting the loan originators and frankly doesnt.
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