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Individual loans rarely topple banks.
The Intersect Fund was founded in 2008 and made its first individual loans in 2010.
And Lewis explains pithily what he found: A giant number of individual loans got piled up into a tower.
Fitch Ratings, shocked by the frequency of early defaults in supposedly safe mortgage structures, belatedly delved into the details of 45 individual loans it considered representative.
In 2002, the bank had five individual loans over £500m; by September 2006 it had 17, including two of more than £2bn.
Nor did the bond rating agencies do reviews of individual loans before they assigned AAA ratings to securities that in no way deserved them.
Similar(10)
Many individual loan sales are also taking place in private.
Other types of investors would like to invest, but it's simply not cost effective to vet each individual loan.
We continue to believe that no one at Lehman Brothers was aware of any wrongdoing that may have been committed by individual loan officers at First Alliance".
Not only should capital be tied to the riskiness of an individual loan; it should also reflect the riskiness of a portfolio as a whole.
But regulators said they were wary of taking additional time to assess individual loan files, a process that would have delayed aid to everyone.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com