Re: Fraud or justice or crime by government(s)? Bank deposits over 100,000 to be seiz
Mortgages and debts are a prized asset to buy from a bankrupt bank. Mortgages are easily sold to a different bank to collect the remaining amount.
Debts are even more fun. If you owe a bank $20,000, and the bank goes bankrupt, the creditors are often so desperate to get anything that your debt gets sold to another bank for, say $5,000. That bank will hire a bunch of collectors to hassle you and eventually “negotiate” with you to just pay back a large portion, say, $10,000.
That way, the bank that bought the bad debt still manages to make a quick profit on it.