Lax underwriting and fraud to blame for credit crisis
Rachel Evans |
NEWS ANALYSIS - January 31, 2008
As regulators search for the roots of the credit crunch, loose underwriting standards and "soft fraud" by originators have been highlighted by the UK's Financial Services Authority.
Tuesday's paper on financial risk criticised the ratings agencies for consistently overlooking these lower standards.
"Ratings agencies have failed to take account of loosening underwriting standards and may have been compromised by potential soft fraud by...
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