They shoud look at what happened in the Mortgage Insurance space when the captive reinsurers in those kickback schemes started to take losses. Suddenly the reinsurance agreements were all “unwound,” with the premiums and losses going back to the MIs. So for the banks, it was “heads I win, tails you lose,” just like this would be.
They shoud look at what happened in the Mortgage Insurance space when the captive reinsurers in those kickback schemes started to take losses. Suddenly the reinsurance agreements were all “unwound,” with the premiums and losses going back to the MIs. So for the banks, it was “heads I win, tails you lose,” just like this would be.