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Subprime Lending Fiasco.edited

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Running Head: SUBPRIME LENDING FIASCO Subprime Lending Fiasco Name: Institutional Affiliation: Date: 1 SUBPRIME LENDING FIASCO 2 Contents Abstract ................................................................................................................................................... 3 Introduction ............................................................................................................................................ 4 Background of the issue.......................................................................................................................... 6 The possible reasons ............................................................................................................................... 7 The lenders ......................................................................................................................................... 7 Homebuyers or the customers ........................................................................................................... 8 Investors such as banks....................................................................................................................... 8 Hedge funds ........................................................................................................................................ 9 Preventing similar occurrences in the future ......................................................................................... 9 Rating agencies ... ...
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