In uk.finance Lord Turkey Cough wrote:
> Yes, but the good thiing is it was an unsecured loan,
> hence he paid higher interest than on a secured loan.
> If he breaks the contract he ends up with a bad credit rating,
> thats all.
The banks are holding the money of the people who saved rather than
recklessly borrowed. If they're owed money by someone who seems to be
reneging on their obligations, and they see that the defaulter has
assets, it seems perfectly reasonable to go after those assets to ensure
that the obligations are met.
Just because a debt is unsecured, it doesn't mean that it doesn't have
to be paid.
FoFP
--
"Our entire banking system is a complete disaster. In my opinion, nearly
ever major bank would be insolvent if they marked their assets to market."
-- Head of hedge fund Lahde Capital, which made 1000% return betting
against subprime. Financial Times 26/11/07 |