Like this guy:
When his (Andrew N. Yao–ed.) Delaware-based student loan company went under in 2002, leaving an estimated $500 million crater, it was a road map of things to come nationally on a billion-dollar scale with subprime mortgages in place of the subprime student loans.
Only, instead of getting a federal government bailout, Andrew Yao’s story ends today with his reporting to federal prison to begin serving a six-year sentence on a dozen charges including bankruptcy fraud, wire fraud and making false statements.
The demise of Student Finance Corp. in Newark and the subsequent federal prosecution of Yao, its president and sole shareholder, was a cautionary tale that no one realized or understood was the shape of things to come.
Another quote from the article, from the pictures on the sidebar:
James Butkiewicz, professor of economics at the University of Delaware, says initiating loans and almost immediately selling them off created an incentive for companies to make as many loans as possible, no matter how bad, because someone else would be taking the risk