| Not the tip of the iceberg, just a lesson. Basically, they got greedy and they (and their customers, mostly very rich people) paid the price for it. They invested aggressively into a market that was slowing down, and didn't see (or ignored) the flashing warning lights until it was too late. It's very different from what happened in 07-08, when the banks were lending money to anyone who could fog a mirror without worrying about getting the money back because they could slice and dice the questionable loans, package them with good loans, and sell them to other banks and investors. This is one bank that did some really stupid things that probably made sense at the time they decided to start doing them, but it's not a trend. |
