"Know thy borrower." That, of course, has been a central axiom of banking. But as banks get bigger, and as cost-cutting becomes increasingly important, it becomes enticing to cut corners. Unfortunately, a number of banks have done that, and are now paying the price.
Lending is hard work and demands a lot of time. But some banks seem to have thought they can save time and money by merely buying pieces of loans made to well-known names from big national syndicators.