The banks knew exactly what they were getting

Reader comment on: The Banks as 'Victims'

Submitted by benjamin Geballe (United States), Oct 13, 2009 21:38

To say that the banks were not aware of what they were buying from the mortgage brokers is laughable. The banks knew exactly what they were getting, but the short term transaction fees that banks and brokers get from these deals (which boost individuals' compensation) created perverse incentives to bring in more shoddy mortgages, and also provided a booming market for shady mortgage brokers to target people they knew could not pay. Sadly, but unsurprisingly, the populations targeted were disproportionately people of color.

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