Thursday, December 1, 2011

Quotation for Today

“The bigwigs of the corporations knew this, but they figured we’re going to make billions out of it, so who cares? The government is going to bail us out. And the problem loans will be out of here, maybe even overseas.”  

James Theckston

Mr. Theckston is a former regional vice president for Chase Home Finance in Southern Florida and his comments quoted here refer to the behavior and attitude of the banks in the run up to the subprime mortgage crisis.  The subprime loans were the foundation for many of the "AAA-rated" mortgaged backed securities sold to pension funds and other investors.

More comments by James Theckston on the ethical nihilism in the banking industry are provided in The New York Times op-ed, "A Banker Speaks, With Regrets" by NY Times columnist, Nicholas D. Kristof.   Kristof's article is essential reading.

No comments:

Post a Comment