Since it charged its borrowers more than it paid its creditors, it could afford a big expansion of its operations.
The next storm, last month, cost it $484 million to settle charges it treated its borrowers badly.
Shinsei's sale did not end forbearance for many of its borrowers; it merely transferred the problem to other banks.
PHH admits that it referred its borrowers to mortgage insurers in exchange for the insurers' agreement to purchase reinsurance sold by one of PHH's subsidiaries.
Not only does it sometimes become one of its borrowers' biggest customers, it often works with them to develop new products based on its brews.
It is vulnerable to defaults by its borrowers, not its lenders.
Even so, it has provided help to few of its borrowers who are eligible for loan modifications that will keep families in their homes.
So it is with the IMF's continuing confrontations with its borrowers, with one government after another pleading: "You don't have to do this".
It has tightened its lending standards the average credit score of its borrowers has risen from 640 in 2006 to nearly 700 today and increased its annual premiums.
The bank does not disclose the names of its borrowers.
In other words, its borrowers have inadvertently become its creditors.
