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Citigroup and the subprime mortgage

Idenify the root cause for the wrong doing with Citigroup and the subprime mortgage. Present and defend your reasoning. Discuss the effectiveness of the company's response to the situation then and now.

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Business Law

Identify the root cause for the wrong doing with Citigroup and the subprime mortgage. Present and defend your reasoning. Discuss the effectiveness of the company's response to the situation then and now.

The root cause for the wrong doing with Citigroup and sub-prime mortgages is the fact that Citigroup turned mortgages into bonds and securities. These mortgages were sub-prime home loans that had been made to borrowers with poor credit. The Citigroup turned some of these securities to large investors but kept a large chunk of these with them. The fact that Citigroup lent large sums of money to borrowers with poor credit was the root cause. Now when the housing market turned downwards ...

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This answer provides you an excellent discussion on Citigroup and the subprime mortgage

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