Quote:
Originally Posted by genuinegirly
It is my understanding that there is some confusion on who owns what, and even sound banks (ie- Wells Fargo) that stayed clear of risky mortgages have been seriously impacted.
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Yeah, this is confusing, I guess it is like dominoes. Also it seems clear now that the government could have (should have) prevented this by either forbidding such high leveraged positions by the banks and/or forcing the security insurers like AIG to actually have enough money on hand to pay the claims. I understand they got around being regulated like real insurance companies by calling the insurance they sold credit swaps or some such thing.