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Becuase they can short and/or insure their own loans if the insurance and/or short is in danger of becoming more profitable than the potential loan loss.

And without proper regulation and oversight they might be encouraged to do so.

Hypothetically.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Apr 26th, 2010 at 02:51:38 PM EST
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