…some account executives earned a commission seven times higher from subprime loans, rather than prime mortgages. So they looked for less savvy borrowers — those with less education, without previous mortgage experience, or without fluent English — and nudged them toward subprime loans.
Nicholas Kristof of the New York Times recently spoke with James Theckston, who was a Regional VP for Chase during the housing boom. Theckston now speaks with regret about his culpability in the financial meltdown, as well as that of his bosses.
…they figured we’re going to make billions out of it, so who cares? The government is going to bail us out. And the problem loans will be out of here, maybe even overseas.