subsequent bailout of the banks

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meramli

Senior Member
turkish
BBC US plans housing reform
The US government is reforming the country's housing finance system, in an effort to reduce the risk of future crises. In particular, it will examine the two housing agencies known as Fannie Mae and Freddie Mac.

Home loans were at the heart of the financial crisis and the subsequent bailout of the banks.
President Obama's government has already pushed through congress an overhaul of regulation, but one important item was left out; what to do about the two key agencies in the mortgage market, known informally as Fannie Mae and Freddie Mac.

I don't have problem with the words but I couldn't make sense of the sentence. Can you explain what does the first sentence mean? Thanks in advance.
 
  • The Newt

    Senior Member
    English - US
    "The subsequent bailout of the banks" means "the rescue of the banks that followed (the financial crisis)." Does that help?
     

    meramli

    Senior Member
    turkish
    Sorry, that's not enough, I have problem with the all of the first sentence
    1. What is home loans? 2. What is 'home loans were at the heart of the financial crisis'? 3. Is 'subsequent bailout of the banks' related to 'home loans were at the heart of' or are they independent expressions?

    In all of these, I have problem. Thanks.
     

    The Newt

    Senior Member
    English - US
    Sorry, that's not enough, I have problem with the all of the first sentence
    1. What is home loans? 2. What is 'home loans were at the heart of the financial crisis'? 3. Is 'subsequent bailout of the banks' related to 'home loans were at the heart of' or are they independent expressions?

    In all of these, I have problem. Thanks.
    "Home loans" are mortgages, loans so that people can buy houses. The crisis was caused by problems with the market in mortgage-related investments. As a result of the crisis, banks lost money and had to be rescued by the government.
     

    meramli

    Senior Member
    turkish
    I have problem with 'home loans were at the heart of subsequent bailout of the banks' if we skip 'financial crisis' this come out, can you explain this? Thanks.
     

    The Newt

    Senior Member
    English - US
    I have problem with 'home loans were at the heart of subsequent bailout of the banks' if we skip 'financial crisis' this come out, can you explain this? Thanks.
    The home loans caused the crisis, therefore the bailout that was required to solve the crisis ultimately arose from the mortgage issue as well.
     
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