Banks default rates are scary

I was at a wedding Saturday night and was sat next to a comptroller for a large bank.  His portfolio was subprime housing.  His bank has over $50 billion in subprime mortgages and there is almost a 30% default rate.  I asked him what happens when they work out the loans, if they would be loaning that money again.  His response was, No.  They’re going to dissolve the entire subprime division.

I also asked if they get sued all the time.  Yes, they get sued all the time.

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