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Won't the bank just pass the loss on to us?

I used to work for a huge bank and they loved patting themselves on the back when they offered loans to minorities. Of course they never tell us the rate of repayment on those loans.

The bank losing $40k is much different from you losing $40k

The bank just made the money up. You may have deposited $4,000 which, thanks to fractional reserve lending, allows the bank to make loans 10x that amount. So the bank utilized your $4,000 savings account as justification to lend $40,000 to some illegal spic. And if the spic doesn't pay it back then the bank didn't lose anything because they never had the $40K to begin with, and your $4k is still there. The $40K loan was just numbers in a computer, and fiat fake money printed. And many of these bogus loans are FDIC insured, which you also pay for.

a subversive non. what are the odds?

I'm sure a caravan of financed vehicles are moving south of the border.

We should cut our losses; it will be more expensive in the long run if he stays here.

Remember in 2008 how everyone knew that they gave loans to people that couldn’t pay them back? But the banks were pretty much legally forced to thanks to the CRA? And then the result was mass foreclosure on said homes? And then the banks had to go through a dog and pony show, pre-planned “senate hearing” where congress passed the blame and your tax dollars to those banks? And then the banks became the largest realtors in the world? And then they leveraged those assets to purchase more assets with your own taxes?