Reverting to crisis business models

By EuroWeek Reporter 1
03 Apr 2014

Originate to distribute, the business model oft quoted as one of the primary causes of the subprime mortgage crisis in the US, and by extension, the rest of the financial crisis, is back. But this time it’s different, apparently, or at least backwards.

Crédit Agricole announced in its results that its future business plan includes continuing to roll out its distribute-to-originate model. Could this be a franco-syntactical inversion of good old originate-to-distribute? Surely not.

And at least two other banks are planning to do the same. BNP Paribas and Intesa have ...

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