The Crisis Of The Subprime Loan Scandal

1222 Words May 9th, 2017 5 Pages
The overarching problem of profiteering is the foundation of many of the moral problems that came from the exploitation of homeowners during the subprime loan scandal. In the financial industry, Lewis (2010) defines the awareness of top executives and bank loan officers that participated in giving out these loans, More so, an interview with Steve Eisman reaffirms the fully conscious role that loan officers played in allowing individuals without good credit ratings to take these loans. In many cases, the banking industry argued that it was the fault of those that took the loans, but it was actually the facilitation of these loans by loan officers that laid the unethical and immoral foundation of this scandal:
Whenever Wall Street people
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Another aspect of Desmond’s (2016)” research is based on the perspective of the slumlord culture that also exploits low-income people in the city of Milwaukee. A focus on the behaviors of local landlords also exposes the lack of social responsibility on the part of predatory property owners that only seek to extract money from the most impoverished sectors of society. Another aspect of the unregulated financial markets reveals the predatory nature of landlord policies, specially in the case of Tobin in Desmond’s (2016) sociological examination of real estate culture in urban Milwaukee. On one hand, Tobin would be lenient with renters in his trailer park when they were temporally unable to pay rent, but on the other hand, a lack of written contracts also defines the underhanded method of manipulation and control that he wielded over his renters. Much like the banking institution loan officers that never checked the credit background of a subprime loan recipient, so does Tobin ignore contractual and legal obligations when managing his tenants in the trailer park:
Tobin’s negotiations with tenants were rarely committed to writing, and sometimes tenants remembered things differently from the way Tobin did. A tenant would say she owed $150 and Tobin would say it was $250 or $600. Tobin once forgot tht a tenant paid a year’s worth of rent in advance after winning a worker’s compensation claim. Trailer park residents had a word for this: being “Tobined.”
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