Re: Nothing, but the mob don't like to hear that
Maybe in Ole Blighty, but not on this side of the pond. The banks were making mortgages they knew couldn't be repaid. They knew this because their analysis software told them so. They did it, because if they didn't the bank regulator were going to hit them with totally bogus redlining charges and inhibit their ability to operate.
Knowing they had bad loans on the books and that they COULD lose their shirts if the shareholders found out, they went looking for a way to get rid of it. The solution they came up with was MBSs. Slice up the bad loans, mix them with good loans, and they're no longer bad loans, they're mostly good loans. Which would have been okay except they overvalued the mostly good loans. Also, as the first adopters were making money hand over fist, there were subsequent waves of businesses who took it up. The end result was MBSs that weren't even mostly good loans.
So criminality all the way around.
Biting the hand that feeds IT
