00:01
So james borrowed $300 ,000 from a home bank a, for a home rather from bank a.
00:17
And bank a resells the right to collect on that loan to bank b.
00:23
Now bank b securitizes that loan with hundreds of others and sells the resulting security to a state pension plan, which at the same time then purchases an insurance policy from, aig that will pay off if james and other people whose mortgageeges are in the security can pay of their mortgage loan.
00:46
So suppose that james and all the other people can pay of their mortgagees, which financial entity is legally obligated so by the loss.
00:55
So we need to know that and the options are bank a, bank b, the state pension plan or aig.
01:02
We need to know that james borrows the money from bank a.
01:07
So first of all, james borrows from bank bank a and then bank a then transfers to which is transferred to bank b rights.
01:41
So then bank b now sells the security to the state pension plans...