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But some have criticized the government for not dealing more harshly with bankers in light of their lax standards for making loans and packaging them as investments, as well as their problems with modifying troubled loans and processing foreclosures.
But Fannie Mae and Freddie Mac, the government-chartered siblings that tower over the market, spy gold in the rubble or at least a chance to polish their tarnished reputations.Founded to promote affordable housing, Fannie and Freddie make life easier for lenders by buying their home loans and packaging them as securities, or by guaranteeing third parties' issuance of mortgage-backed bonds.
In 2006 and 2007, many bankers calculated expected rent increases when making commercial real estate loans and packaging them to investors.
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A subsidiary created about 15 years ago, Harley-Davidson Financial Services, made those loans and packaged them into securities to sell to investors.
Andrew M. Cuomo, New York's attorney general, has been handing out subpoenas to Wall Street in an effort to find out how banks bought subprime home loans and packaged them into complex securities.
Investment banks earned billions of pounds in the run-up to the financial crisis by buying pools of mortgage, car and credit card loans and then packaging them up to re-sell them for a fee.
This week China's top security man, Zhou Yongkang, became the latest in a series of senior Chinese officials to visit Nepal, bearing loans and aid packages.
The two organizations buy mortgages from banks, guarantee the loans and then package them into bonds.
That was regulation that incentivized them to make those loans, force them to make those loans, and then package them up because no bank, no bank, no bank ― would your community bank have made loans to people that couldn't pay it back?
Many institutions were involved in making loans, evaluating the debts and packaging them into securities.
That's because some of the biggest deals have yet to be completed, including the loan and bond package for the $11.3 billion leveraged buyout of SunGard Data Systems, the biggest take-private since 1989′s $25 billion LBO of RJR Nabisco.
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