Big Banks Find a Back Door to Finance Subprime Loans

[JonesBones]

• Despite tough new regulations aimed at lowering risk for banks, Wall Street continues to find a way to finance subprime loans.
• Instead of direct lending, big institutions like Wells Fargo and Citigroup loan money to nonbank institutions — shadow banks — who then deal with higher-risk clients.
• Banks say this way helps lower their exposure.

Big Wall Street banks have found a way to continue funneling money to high-risk borrowers — by lending to other institutions who make the so-called subprime loans.

Wells Fargo, Citigroup and others pushed $345 billion to nonbank lenders, sometimes called "shadow banks," from 2010 to 2017, according to a Wall Street Journal analysis published Tuesday.

https://www.cnbc.com/2018/04/10/big...to-stay-in-the-subprime-lending-business.html


Discuss.




That's a nice shirt, do they make it for men? lol

 

[homer]

I have a client that has a hard money loan for her principal residence and a fixer upper. The loans are about 10% and the fixer upper is taking longer to complete so they took a premature distribution from a retirement account. Now they owe a crap load of taxes as they did not withhold anything and they are mad at me. WTF, you are a new client, I did not know you before you stepped into my office it is not my fault. Consult a professional next time before you make these wise choices.

 

[Islam Imamate]

They didn't have to pay for their mistakes last time, not like the rest of us, why would they learn anything from it?

 

[JonesBones]

They didn't have to pay for their mistakes last time, not like the rest of us, why would they learn anything from it?

Good point.

http://www.pbs.org/video/abacus-small-enough-to-jail-suqmxe/

Abacus: Small Enough to Jail is a 2016 American documentary film by Steve James.[2] The film centers on the Abacus Federal Savings Bank, a family-owned community bank situated in Manhattan's Chinatown in New York City which, because it was deemed "small enough to jail" rather than "too big to fail", became the only financial institution to actually face criminal charges following thesubprime mortgage crisis.[3]

 

[Prime Rib]

Motherfucker are we going to do this again?

 

[Prime Rib]

I have a client that has a hard money loan for her principal residence and a fixer upper. The loans are about 10% and the fixer upper is taking longer to complete so they took a premature distribution from a retirement account. Now they owe a crap load of taxes as they did not withhold anything and they are mad at me. WTF, you are a new client, I did not know you before you stepped into my office it is not my fault. Consult a professional next time before you make these wise choices.

I cashed out a small 401k in my younger days(I know that's dumb) and even I knew to withhold at the time.

 

[Big Nasty Edison]

Heck yeah! Bringing back that great recession! Time relive the Good ole days!

 

[Quequeg]

Privatize the profits, socialize the losses, high finance 101.

 

[Fawlty]

Bad news, but at least we know the Trump administration is strong on regulation and oversight.

 

[Jack V Savage]

There's nothing inherently wrong with making subprime loans. The problem is mispricing risk.

 

[Deleted member 159002]

Motherfucker are we going to do this again?

And Republicans want to get rid of the Consumer Protection Bureau. Why anyone would want to make it easier for people to scam other people is beyond me.

 

[Prime Rib]

And Republicans want to get rid of the Consumer Protection Bureau. Why anyone would want to make it easier for people to scam other people is beyond me.

The right hates Elizabeth Warren so it's easy for politicians to demonize the bureau and say it's a waste.

 

[Long Dark Blues]

Smh.

 

[BassAckwards]

Heck yeah! Bringing back that great recession! Time relive the Good ole days!

best time to buy

 

[MadSquabbles500]

• Despite tough new regulations aimed at lowering risk for banks, Wall Street continues to find a way to finance subprime loans.
• Instead of direct lending, big institutions like Wells Fargo and Citigroup loan money to nonbank institutions — shadow banks — who then deal with higher-risk clients.
• Banks say this way helps lower their exposure.

Big Wall Street banks have found a way to continue funneling money to high-risk borrowers — by lending to other institutions who make the so-called subprime loans.

Wells Fargo, Citigroup and others pushed $345 billion to nonbank lenders, sometimes called "shadow banks," from 2010 to 2017, according to a Wall Street Journal analysis published Tuesday.

https://www.cnbc.com/2018/04/10/big...to-stay-in-the-subprime-lending-business.html


Discuss.




That's a nice shirt, do they make it for men? lol

As long as we dont bail them out, and they lose everything the next time SHTF, I am perfectly ok. Let them make the mistakes, and let them suffer the consequences.

 

[Lead]

Motherfucker are we going to do this again?

This time will be different...

 

[Prime Rib]

This time will be different...

Yeah selling the loans(debt) to people will be harder.

 

[Lead]

Yeah selling the loans(debt) to people will be harder.

What do you think the reasons behind that would be.

 

[Prime Rib]

What do you think the reasons behind that would be.

Buying the debt can be very profitable. But that was an engine in creating the recession. If I were a trader I would play that angle. This administration wants to curb regulation. Make a few million and fuck the rest.

 

[Last Samurai]

And Republicans want to get rid of the Consumer Protection Bureau. Why anyone would want to make it easier for people to scam other people is beyond me.

they make a living off of scamming other people