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But it's definitely taking on some mortgage risk.
"At the end of the day, the mortgage risk is held by the taxpayer".
A similar fight is going on over "skin in the game" rules for mortgage risk retention.
"They can't control Europe imploding or this enormous mortgage risk," he said.
"The mortgage risk is everything for Bank of America," said Glenn Schorr, an analyst with Nomura.
Banks might not have taken on so much subprime mortgage risk if they had been required to disclose it.
Similar(33)
Eminent domain would shift new mortgage risks to the lender, even if the borrower is current on his mortgage payment.
When buying Bear Stearns and Washington Mutual, it marked down their assets by a large amount, in part to reflect the mortgage risks.
Both Société Générale and Credit Suisse noted their low exposure to the credit crisis linked to subprime mortgage risks in the United States, which has hit some European banks in recent months.
Adding to the sense of urgency are the strains felt by bond insurers who had written CDS contracts for banks hoping to hedge their mortgage risks.The biggest push yet to strengthen the market came on July 31st, when, at the Fed's urging, major dealers set out ambitious goals to cut trading and settlement risks, mostly over the next six months.
It would encourage executives to "gamble for resurrection"—to take big mortgage risks in a desperate attempt to make profits.All of which argues in favour of the bazooka option, nationalisation, as the only one that is fair to the taxpayer.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com