The Last Decade

banks bonds economy Jan 10, 2018


Back in 2007, I was closing New Century Mortgage with the Receivers appointed by the Bankruptcy court.  At the time, New Century was the largest Subprime Lender in the country.  When closing a company during bankruptcy all of the problems are visible and magnified.  What made this one unique was that New Century's problems would soon be felt by the entire world. 

Realizing this situation, I proceeded to call a colleague, Gwen, who was the head of Single Family Credit Risk at Fannie Mae to inquire if they were going to take any precautionary measures to contain the potential crisis.  Unfortunately, she didn't know what I was talking about.  Shortly thereafter, I witnessed Ben Bernake, The Chairman of the Federal Reserve on Television stating that the subprime crisis was contained.  At that moment, it became apparent that financial illiteracy was much, much worse than anything I could ever have...

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