Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

By Katherine Thompson, Newser Staff

Posted May 6, 2009 9:28 AM CDT

(Newser) – Some 21 of the top 25 subprime lenders that triggered the global economic collapse were either owned or financed by banks that ended up needing bailouts, an analysis by the Center for Public Integrity finds. Among the backers, who make huge profits on the subprime business, were Lehman Brothers, Merrill Lynch, JPMorgan, Citigroup, Goldman Sachs, and AIG.

The center's analysis of 7.2 million subprime mortgages shows that the top 25 originators account for about 72% of the high-risk loans. Twenty of the top 25 subprime lenders were found to have closed, been sold, or stopped lending. Eleven paid out claims to settle lawsuits alleging lending abuses.

GMAC LLC underwrote subprime loans doled out by subsidiaries, a new report reveals. (AP Photo/Carlos Osorio, file)

The headquarters for JPMorgan Chase, left, is shown Thursday, April 16, 2009 in New York. (AP Photo/Mark Lennihan)

In this April 16, 2009 file photo, a sign at the Citigroup Center is shown in New York. (AP Photo/M ark Lennihan, file)

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Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

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Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

States Offer Banks Immunity From Mortgage Lawsuits

In exchange for up to $25B payoff

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

Fed Hits Wells Fargo With Record $85M Fine

Bank accused of mortgage abuses

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Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

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OTHER STORIES ON OUR RADAR

Citigroup • subprime mortgages • mortgage • Wells Fargo • AIG • GMAC • investment banks • JPMorgan Chase • subprime lender • banks • financial crisis • TARP

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

States Offer Banks Immunity From Mortgage Lawsuits

In exchange for up to $25B payoff

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

Fed Hits Wells Fargo With Record $85M Fine

Bank accused of mortgage abuses

About Us

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Newser By Users

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What is Newser?