Quote:
Originally Posted by Horizon
Not just Scottish banks, but English ones too, aka Northern Rock. Greed is universal.
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The problem that Northern Rock had was that they funded the money for the mortgages that they issued, by selling on existing mortgages to other financial companies. Then suddenly the bottom dropped out of the market for those resold mortgages. That meant that they had trouble funding new mortgages. The problem was a general lack of trust in the packages of mortgages being sold by anybody.