subprime mortgages, because we don't do direct budget outlays as other countries do.
The subprime crisis shook the European banking system.
but subprime loans are loans to uh borrowers who normally wouldn't qualify for a loan because of
largest subprime lender in the country and it was known for really rewarding
Stern subprime lending it was you know EMC mortgage um or it wasn't Leman
Brothers subprime lending it was BNC mortgage be Sterns and Merill I'm sorry
that subprime lenders were starting to get hurt because Alan greensman had raised interest rates on top of that in
originated subprime mortgages and securitize them through its own Capital markets division the only thing that
buy subprime uh mortgages or auto loans or credit card receivables whatever you
And now the subprime crisis.
of the subprime mortgage meltdown, or the BP thing.
collapse of the subprime mortgage Market and if you what's intriguing is that is
scale these are the subprime borrowers these are people that have a history of not paying their debts and that lenders really don't want to borrow to those or
as the subprime markets is because all of the loans given to these people
es that cause subprime to blow up except for this time it's going to be Prime and
about his book uh subprime solution how the global financial crisis happened and what to do about it this was published
of this are the subprime banking crisis we've seen.
thing with your subprime loans hey why not if Drexel wants to do
Commission in the uh subprime world the commission might be two three or
you into subprime or maybe they promised you certain terms and then did a bait and switch when you signed terms were
2006 get into the subprime space Angelo was was buddies with uh
to some subprime shop and and and I say okay I'm going to have the Bohan group review 50% of your loans to make sure
audience male #2: É and focusing on subprime loans again.
United States in particular The subprime Lending which was kind of the poster chart of the housing bubble was all located
more institutions that lend to subprime borrowers uh and uh they have been
implosion of the Southern California subprime industry he also hosts a mortgage Insider blog website the blog
usually 700 or 720 and higher and subprime is basically 620 and lower and
doing here and he started talking about subprime and they said you know what we've had some success with taking Prime
arnal I could own my own subprime lender make the bonds sell the bonds and for
new profit centers among them was the subprime
going to buy First Franklin A subprime lender for more than a billion
early 2006 to Mid 2006 When A subprime lender like arnal uh shop or New Century
little bit more complicated than a traditional subprime bond in that you set up a corporate entity for this CDO
Whereas for example, the subprime mortgage crisis and all of that, people seemed to understand it better and grapple with it more, but nobody
there was only like $0.5 trillion worth of upset subprime mortgages in the market at the time, or $0.5 trillion, right?
So what actually happened in 2008 was we had the subprime mortgage crisis.
There was a thing called a negatively amortized adjustable rate subprime mortgage.
It really talked about the negatively amortized adjustable rate subprime mortgage, and it also talked about it in the book.
There can be a bubble bursting in some subprime market, or in some particular money market.
It's not about factors like credit default swaps or subprime mortgages.
In the second example, subprime lenders cajole buyers into accepting devices called startup interrupters, which can be activated remotely
And the great recession was an example-- this whole subprime phenomenon was an example of an individual making an ill-advised decision, not only affecting
it's interesting to see that um that subprime loan the the low price homes
good credit it was probably about 2.5% and for subprime these are the loans Wall Street
money how do you make a lot of money on subprime yield right we live in a world
or any of the other early players in the subprime space Roland arnal first used mortgage
brokers just like Angelo so mortgage brokers would bring him the subprime loans eventually he sold his company off
they're up to Snuff and then the subprime shop would say well but bear is only going to review
was backstopping their losses same problem here with the subprime crisis and things leading up to it is um the
They accused Wall Street, the subprime loans, and those kind of things.