Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Other people’s money leads to other people’s problems. Lenders used to have a strong incentive to ensure a real estate project made financial sense, as loans lived on their balance sheets. When Wall Street stepped into the picture with its mega commercial mortgage–backed securities loans, which were sliced and packaged into securities to be passed on to other investors, deals began to be structured for maximum size rather than maximum sense. Nowhere was this disastrous

source https://therealdeal.com/2020/08/21/tuna-fish-sandwiches-and-billion-dollar-deals-charles-bagli-on-other-peoples-money-and-the-next-life-of-new-york/