US Department of Justice launches probe into GM subprime loans

For those of you who don’t know, the whole subprime loan debacle involved lending money to people who had difficulty honouring the required payments. These loans were characterized by higher interest rates, little-to-no collateral and less favorable terms to compensate for the high credit risk. These loans were then packaged into mortgage-backed securities by some supposedly well-regarded institutions, like your banks and similar … Read more