Forbes Sep. 28, 2021

Wells Fargo Gets Into Trouble Yet Again Over Alleged Fraud

There’s a concept in finance called a bad bank. A practice first started in the late 1980s, when general conditions make a lot of loans begin to default, a bank will set up a separate entity and transfer the toxic assets over at market price, which often means writing down a loss. But it gets the bad debt off the “good” bank’s balance sheet.

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