Major finance companies did not suffer as much from the recent financial crisis as depository institutions primarily because they are forbidden from creating home mortgages.

Question

Quizplus · Accepted Answer

Major finance companies, such as Lehman Brothers and Bear Stearns, were heavily involved in the creation and distribution of complex financial instruments, such as mortgage-backed securities, that played a major role in the financial crisis. While they may not have created home mortgages themselves, they were still significantly impacted by the collapse of the housing market and the resulting defaults on mortgages.

Major Finance Companies Did Not Suffer as Much from the Recent