Well it was a really ironic situation.

The bank was a local one and was doing all the crazy shit other banks were doing during the real estate boom. After all if you dont someone else will.

He was concerned about the bad loans but the bank was protected, they were selling the loans and getting them off the balance sheet. Thus they were protected since they made money on the transactions, got fees for servicing the loan, but the loan itself went to Wall Street.

Of course, they were exposing themselves in the back end by buying MBS from...Wall Street.

Who knows, maybe they bought pieces of their own loans back.

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