Appeared on August 19, 2007
Joseph Mason, associate professor of finance at Drexel University, has done extensive research into the financial underpinnings of the subprime mortgage industry. As he sees it, the potential for disaster in the subprime lending arena should have been obvious before, during and after the Household International affair. "Household was among a number of aggressive players," Mason said. "It was not unique in its business model. By not cracking down after seeing this kind of behavior, regulators allowed it to grow and become standard industry practice."