Pursuits
Liar Loans Redux: They're Back and Sneaking Into AAA Rated Bonds
- Homebuyers are taking on debt again without much paperwork
- Wall Street spreads legal risks through new bond deals
What's Different About 'Liar Loans' This Time?
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The pitch arrived with an iconic image of the American Dream: a neat house with a white picket fence.
But behind that picture of a $2.95 million home in Manhattan Beach, California, were hints of something darker: liar loans, those toxic mortgages of the subprime era.