I believe the banks were in Western PA and the loans were likely portfolio loans. The point is there will be lots of creative ways people get bailed out and there doesnt have to be one single solution. In these cases, the loss was going to happen and by re-writing the loan at a lower amount the bank came out ahead vs. foreclusre. The shareholders only care about returns and this increased the returns so I doubt they would crucify the bank for doing this.
With the democrats (or democratic party for those that prefer it stated that way) in power I’m starting to think we will probably inflate our way out of this mess.
