Question by flyhigh19: How did the investment banks (Bulge Bracket Firms) end up with the subprime mortgages? ?
Okay so I understand how we got ourselves into the financial crisis and recession right now. I understand pretty much everything else (ex. the packaging of new securities from the mortgages, CDS, and everything else), so no need to explain that stuff. But I don’t understand is that how did the investment banks end up with the mortgages in the first place? Did commercial banks sell the investment firms the mortgages and then they did all of the stuff they did?
Best answer:
Answer by 200IQ/1976
collection during bail outs I believe-This was in a Presidential speech during the first set of bailouts-About nine years ago! Grocery, and retail were getting bailed out then.
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