How Risk Sensitivity Led To The Greatest Financial Crisis Of Modern Times (Resource Investor)

March 14th, 2009 | by DebtFree.net |

Subprime mortgages account for less than 1% of the world’s debt stock. How could they cause the greatest financial crisis in modern times? “Risk sensitivity” is this column’s answer. Regulators gave bankers incentives to combine bad loans with good ones and securitise the package in complex structures. The inseparability of the suspect parts meant problems with one package questioned the value …
source

Sorry, comments for this entry are closed at this time.

DebtFree.net does not assume or pay any debt, nor does it give legal advice, offer credit repair or help stop creditor & collector calls. DebtFree.net provides information regarding various debt relief options as well as referrals and connections to debt relief companies. These companies specialize in specific debt relief categories, including debt management plans through credit card counseling, debt consolidation, debt settlement, debt negotiation, and debt mediation.