A major cause of the 2008-2009 banking crisis was the neglect of banks to seriously scrutinize loan applicants for creditworthiness.

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The neglect of banks to properly assess loan applicants for creditworthiness is widely regarded as a significant contributor to the 2008-2009 financial crisis. This led to the granting of subprime mortgages, which had higher risk levels and ultimately led to many defaults and foreclosures.

A Major Cause of the 2008-2009 Banking Crisis Was the Neglect