Loans And Mortgages Information

Because of the subprime mortgage crisis, Lehman Brothers, one of the largest merchant banks in the U.S., has seen its capitalization literally going to peak this year.

In February 2007 the shares in the company worth $ 83.3-acting, last week the stock oscillated about $ 3.65, a few days ago the final collapse: the value of the title came to 31 cents. The debt amounts to some 613 billion dollars and is the largest bankruptcy ever in the financial world. The bank has also beaten the crack of Worldcom.

What is the dumb subprime? What are the origins?

According to the definition of the Italian Stock Exchange: “I have subprime loans or loans granted to customers defined as high risk. They are called subprime loans, because, because of their greater risk and subject to which the creditor, are not defined as primary, below to debts primary (first) representing the loans in favor of subjects with a history of credit and guarantees sufficiently reliable. “

This type of credit spread in the United States has access to the credit market to consumers who would not have had otherwise. Many are the opponents of this technique: accuse the utilities companies to implement predatory practices, accepting clients who were clearly not the resources to meet the debts. Clearly, many borrowers were insolvent, and many companies providing application was submitted to bankruptcy.