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Did Lenders Anticipate a Bailout if Loans Soured?

By Jeff Sovern

Before policymakers undertake more bailouts arising out the subprime mortgage crisis, policymakers should ask the classic question: what did subprime lenders know and when did they know it? While much remains unclear about the crisis, considerable evidence suggests that at least some subprime lenders have unclean hands. For example, a year ago, a Countrywide Financial official testifying before Congress about loans, called hybrid ARMs, that carried an initial low rate but would later switch to read more

Full post as published by CL&P Blog on May 07, 2008 (boomark / email).