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To: ctdonath2
>>banks had to invent a new process for insuring such high-risk loans

The Sub-prime leader for some time was Ameriquest/Argent Mortgage.

They were not a bank.  They had no depositors.

They existed only for the origination and securitization of subprime loans.

That would be W with his Ambassador to the Netherlands - Roland Arnall, the "Godfather of Subprime"
>>Not so much fraud as doing government’s will under duress,
Argent Mortgage falsified  FICO scores for thousands of loan applications.  

I know that for a fact.
Other entities manipulated LIBOR, to which a significant portion of Argent's originations were tied. Not surprising, given that their primary warehouse lender was Deutchesbank.
Did the gooberment force them to do that?  Nope.
"The Merchant uses dishonest scales - he loves to defraud"

82 posted on 08/10/2012 8:58:46 AM PDT by OldEarlGray (The POTUS is FUBAR until the White Hut is sanitized with American Tea)
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To: OldEarlGray
Did the gooberment force them to do that? Nope.

The gooberment forced a no-win scenario on banks, which were thus happy to outsource their problems to someone who would accept responsibility. Concentrating no-win issues is ripe for abuse, both malicious and fearful.

OK, we know this and have been over it. Government demanded unrealistic requirements, "crony capitalists" abused it, stuff broke. Blame is both due and pointless. Some reason you're berating fellow FReepers with the subject?

83 posted on 08/10/2012 9:09:18 AM PDT by ctdonath2 ($1 meals:
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