• May 27, 2011

There is a widespread consensus that our recent economic free-fall is attributable in some large part to a “housing bubble,” a time during which more than a few mortgage lenders seem to have been eager to lend to any borrower who would execute loan documents without much focus, if any, on the borrowers’ ability to repay the loan or even, in many cases, without much attention as to the likelihood that the collateral (that is to say the mortgaged property) would likely compensate the lender in the event of default.

Who is paying the price as the bubble bursts?  Of course, the entire economy, U.S. home owners, and many thousands of other commercial actors throughout the economy, including more than a few lenders who are out of business.

And who’s left to sort through the rubble of these disastrous loans to assign blame, apportion responsibility, and, whenever possible, recoup taxpayer bail-out money?

The FDIC.  And, often, those who are being targeted to make amends for playing a role in the thousands of loans-gone-bad are not going without a fight.

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