The servicing operation "fully offsets" lost income from increased delinquencies and lack of origination business. This is by design. It's tough to find good counter-cyclical strategies, but this appears to be one. If you were both TBTF and really in need of cash, could you squeeze this a bit further, say by violating the rule of law?
Emptywheel on the Stress Tests, Servicing Fraud as a Counter-Cyclical Diversification Strategy.
Current Status: Blessed (1)
Seeded on Thu Oct 14, 2010 7:46 AM
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