The subprime mortgage industry was riddled with corruption from "summary" of The Big Short by Michael Lewis
The subprime mortgage industry wasn't just flawed; it was corrupt to its core. To say that it had a few bad apples would be an understatement. The entire barrel was rotten. The people running the show didn't just turn a blind eye to shady dealings; they actively encouraged them. From lenders to investment banks, everyone was in on the scheme. It wasn't just the borrowers who were being taken for a ride; investors were being duped as well. The mortgage-backed securities being sold were like ticking time bombs, waiting to explode and take down the financial system with them. But no one seemed to care as long as the money kept pouring in. The rating agencies, whose job it was to assess the risk of these securities, were either incompetent or complicit in the fraud. They gave top ratings to securities that were essentially worthless, lulling investors into a fa...
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