Exact(3)
This huge expansion in risky loans was made possible by Wall Street banks such as Citigroup and Merrill Lynch, which bundled the loans together and parcelled out the resulting "collateralized debt obligations" — C.D.O.s — to investors eager for higher returns in a low-interest-rate environment.
According to the Federal Reserve, the U.S. consumer lending market is a $3.5 trillion business, yet only $36 billion in loans was made online in 2015.
Toward the end of the bubble, a spate of loans was made to uncreditworthy — or subprime — borrowers, and some of these loans began to default early this year as teaser rates that allowed for low payments in the first few years of the mortgages expired.
Similar(57)
The cost and burden of taking out those loans was making a lot of Americans ambivalent.
Thus rationalized, bad loans were made.
Loans were made to bank officers.
The figure has been elevated since the loans were made.
Subprime loans are made to buyers with weak credit.
The loans are made at below-market rates of 3percentt.
Many of these troubled loans were made in 2007 and 2008 as the market was plunging.
The loans were made by the Wachovia Corporation and a California company it acquired, World Savings Bank.
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