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The rating agencies gave AAA ratings to securities without actually looking at the loans.
MBIA and its competitors insured the securities without bothering to look at the loans.
A bond investor can track the ongoing performance of the bond by digging in and looking at the loans backing the bonds.
"Lenders don't always discover that until later," she said, "when they see clusters of foreclosures in areas, which causes a lender to look more closely at the loans".
As the banks look at the loans Wilpon and his partners have, their options depend on the specific language in the agreements, said Sandra E. Mayerson, a lawyer at Squire Sanders who specializes in restructuring and insolvency.
Whereas a hard bank would manage the loans for profit, almost as alternative investments in a family's portfolio, a soft bank would look at the loans as a way to develop the human capital of their children.
Similar(51)
"We're looking at the loan market.
The second hypothesis looks at the loan growth of small banks.
Mr. Munn became a regular at the loan shop.
"We are changing both the image and the substance of our group," Mr. Marchionne said at the loan repayment ceremony.
It's a Monday and only 10 a.m., but already three lines are forming at the loan windows.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com