Friday, November 23, 2007

Wonder if any American mortgage lenders did this?

Beleaguered British lender Northern Rock put two-thirds of its mortgage portfolio into a separate offshore company. (The Channel Islands serve the same purpose in the U.K. that Bermuda and the Bahamas do here.) Given the way offshore entities have proliferated here in the U.S., I’m actually surprised we haven’t heard about this yet in our mortgage lending industry.

If we do here about something like this year, the subprime market will surely take an even more massive cratering.