I can’t help but wonder how iconic companies like Bear Stearns, Lehman Brothers, Freddie Mae and Freddie Mac can go wrong in assessing credit worthiness and go on sanctioning loans while overlooking key factors such as borrower’s income or capacity to pay.
Current financial crisis primarily arose because of banks decision to lend money against real estate as collateral. Such decisions to lend money were taken without thorough appraisal Read more »