Sub-Prime Dragon...

Pick-up any financial newspaper, the Sub-Prime word seems to be filling complete newspaper space. In layman term, Sub-Prime can be defined as a scenario where lender lend money to a less credit worthy borrower , at much higher interest rates.

According to recent survey by IMF, the total toil of sub-prime crisis is may be more than 1trillion$. The sub-prime crisis not only affected the mortgage sector, but now also affecting the other banking verticals.

But now the question arises, what so called Risk Professional, associated with different banks, were doing when these losses where made. Or were there mouth shut by big bosses of the so called large international banks.

From my opinion Sub-Prime name or tag is used just to hide some of the corrupt practices carried by banks official in order to hide losses, hidden from yearly balance sheets, incurred by banks during many years of their operation.

So balance sheet data of the banks , both affected and not so affected, should be properly scrutinized and audited by some so called audited firms in order to get some proper view of the Sub-Prime dragon. Also this audited report may provide some hints , and punish, all those who are responsible for this financial damage.

Thanks&Regards,
Mohit Kumar