Déjà vu: Royal Bank of Scotland Group (RBS) buys 4,000 "cheap" mortgage loans at auction in March for around half of the value of their unpaid principal. Why so cheap? Because the loans are "to U.S. borrowers who are having trouble paying them back," according to WSJ. To some, this undoubtedly seems like a case of an investment bank's short memory as RBS' ~£1BN in losses on sub-prime assets during the crisis ultimately precipitated its demise. Time will tell.
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