The story begins with nonbank mortgage companies, which were important originators of subprime and prime mortgage loans, typically securitizing them or selling them to investment banks to be securitized. Rumors of troubles among these firms were circulating in 2006 as house prices started to decline, and a large firm filed for bankruptcy in December 2006.
During the last French EU presidency, President Nicolas Sarkozy said: “Europe needs to give itself the means to play the role it must have in the new world that is emerging.” These words still ring true today. We have an opportunity today to take decisions that will allow us to master the next phase of challenges we will face.