Washington Common obtained the majority of Long Seashore Home loan — the newest region one to provided financing thanks to agents, not due to their own team — from inside the 1999
Just before Washington Common collapsed on largest lender inability inside You.S. background, its managers consciously written an excellent financial big date bomb through subprime financing it realized have been planning go bad then packing all of them into high-risk ties, an effective congressional data possess discovered.
Oftentimes, the lending company grabbed financing in which it had discover deceptive passion — such misstated earnings by the individuals — and you may rolled all of them for the home loan ties offered in order to people in place of exposing the new fraud, with regards to the statement released Tuesday because of the Senate’s Long lasting Subcommittee into Research.
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