Big doesn't refer to the size of the company, but rather it's involvement across multiple economies. N were also headlining as they were experiencing losses from the collapsing securities values. Financial Crisis Obamacare Subprime Crisis. Article Table of Contents Skip to section Expand. Most of its business was traditional insurance products. These swaps insured the mortgage securities purchased by investors, in an attempt to reduce the risk of the securities if the borrowers defaulted. What this meant is that they could borrow from the Fed's discount window, and take advantage of the Fed's other guarantee programs intended for retail banks. If Fannie and Freddie had gone bankrupt, the housing market would have collapsed. That left it without the cash to pay the swap insurance.
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