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the subprime crisis by taking on,
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as collateral, some of these risky things
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in exchange for offering loans to member banks.
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It's different from Fed policy
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in that they set up a certain amount of money
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and auction that off to the highest bidder.
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Troubled banks then, who have this
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--the problem banks have now is
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they have these securitized mortgages that they've bought
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and the homeowners are defaulting on the mortgages now.
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So, there's a panic in the market for securitized mortgages
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and the price is often very low