It’s the Mortgage, Stupid

"The thing we should be calling a commercial bank – is not the main culprit of the originate to securitize model. A predominance of these loans were made and securitized by non-depository institutions, mortgage banking institutions and consumer finance companies that were not subject to federal banking supervision. That’s not to say that big banks and thrifts – subject to Federal banking supervision – were not major players. Wells Fargo, Wachovia, Citigroup, and Chase make the lists of top subprime, alt-A or high interest, mortgage lenders. Also on the lists are the mortgage banks dressed up as thrifts (and subject to Federal supervision) Countrywide, IndyMac, as well as Washington Mutual, until the FDIC seized it, one of the 10 largest depositories in the country."