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.
