Banks "victim" of predatory mortgage defaulters - Buffet.

[ZenOps]

http://www.bloomberg.com/news/2012-0...s-winners.html

As always the glass is either half full or half empty.

I do see the side where the banks took on a 40 year mortgage at teaser rates - given to bums that had no intention of ever paying the full amount. Bum wins because he gets to live in a nice house for quite a few years, bank loses because they get a worthless house that they never even got rent-level money on.

But whos fault is that? The bank for being so gullible, or the borrower for pretending to be "all that".

[dexlargo]

It's not that, I think he's suggesting that some borrowers were malicious and deliberately renegotiated their mortgage to get a big pile of money - hid it - then intentionally defaulted and walked away with the cash - essentially stealing money.

[Toma]

LOL.... what an idiot.

He must be getting senile in his old age lol.

American banks are lazy, greedy, corrupt.

you know if you write a post dated check in the US, they don't honour it??

They claim everything is comuterized, so no one actually looks at the date? They cash it soon as they get it!!!!

[Xtrema]

Charles Ortel, managing director of Newport Value Partners, said lenders failed to do sufficient underwriting because they counted on selling the mortgages to investors.

Sums up the problem in one sentence.

They were giving loans to everyone and then cries when they get burnt?