Now that is asset stripping
The Insider is not surprised to see that a number of the banks, insurers and other firms involved in the US sub-prime debacle are suing each other.
However, some details coming out are surprising.
Specialist insurer MBIA is suing Credit Suisse over “liar loans” issued by the bank’s US division, often to people with no income or jobs, that it ended up insuring.
Astonishingly, Credit Suisse apparently gave a $1 million (£613,000) mortgage to a stripper who claimed to earn $12,000 (£7,350) a month.
Shortly after, the US housing market crashed and she did not make a single repayment.
Let’s hope she was as good at getting money from her clients.