Investment banks bundled mortgages with other loans

). Investment banks bundled mortgages with other loans and debts into collateralized debt obligations (CDOs),
which they sold to investors. Rating agencies gave many CDOs AAA ratings . Subprime loans led to predatory lending. Many home owners were given loans
they could never repay.
5 . What happened to the banking industry in the 90 ’ s and 2000 ’ s, consolidation or expansion? Give examples .

Consolidation Investment banks promoting internet banks, small banks collectively becoming one large banking firm, etc
6 . Does the video say derivatives make markets safer or more unstable? Why ?
Unstable because no one could regulate them.
7 . What did bankers do with derivatives ?
They use them to increase. The value or safety of a loan that way rating agencies can give that loan a AAA rating.
8 . Who is Barney Frank and was his role/title in the movie ?
A congressman that allowed the banks to act the way they did.
9 . Explain the difference from today and years ago with home loans. What is the problem with this ?
During the bubble, some high credit borrowers used multiple loans to afford more expensive homes, but today the vast majority of homebuyers
take out a single mortgage.
10 . Explain the title of Elliot Spitzer and his role in the film :
He was the governor of New York at the time of the crisis
11 . What are the riskiest loans called? Why did investment bankers prefer them ?
Subprime and they are preferred because they cost less

12 . What financial institution was the largest lender of sub prime loans ?
Countrywide financial corporation was the largest subprime lender. Subprime loans refer to the debtors who have weak credit records. They are at
a greater risk than prime debtors offered on conventional loans. In the U.S, as per the center for public integrity, Countrywide financial corporation