Commercial Real Estate Finance

Posts Tagged ‘sub-prime’

Bloomberg published an article online yesterday about how States are racking up investment banking fees to refinance their debt.  These are the same large investment banks the State governments resent so much for making sub-prime loans to homeowners in their State, eventually triggering the downward spiral of their local economies.  Granted, the investment banking divisions of these banks never made sub-prime loans.  But these banks are so huge that the parent company under which the investment banking division falls, is ultimately the same company that was making home loans.  There’s something very distasteful about having to give your capital raising-business to an I-Bank that is owned by the same parent company as the mortgage-lender you distrust so much.  This is one major reason why you should rely on smaller, less complicated I-Banks to raise capital whenever possible.

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