She says, he says An article in the Washington Post of June 13 titled “Ex-loan officer claims Wells Fargo targeted black communities for shoddy loans” includes a number of “he said, she said” claims. In this case “she” is Beth Jacobson, who worked as a loan officer for Wells Fargo. Amongst other things she claimsRead… Read more »
Yuliya Demyanyk, a senior research economist at the Cleveland Fed, has a posting describing how the subprime mortgage crisis, the touchpoint for current economic woes, was not unanticipated and is much more complex than reported.
http://www.hbs.edu/research/pdf/09-060.pdf Thanks to Ezra Klein’s blog on washingtonpost.com for the link – the paper is a great read (once you get past the economics) to understand exactly the mortgage back securites (MBS) market fell apart – essentially it was due to (1) bad assumptions of defalut rates, (2) poor ratings of each MBS pool byRead… Read more »