Bankers avoided fear by decoupling profit from loan repayment

Evidence

If you and I are clever enough to recognise the inherent instability of their financial house of cards, surely the bankers recognised it too? So why were they not terrified of what would happen if their various bets went south? There are a number of reasons. One is that they had developed a new way of profiting from loaning to Jack without depending on Jack’s ability or willingness to repay his loan. — Yanis Varoufakis, Technofeudalism, 181

Categorization

• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 181
• XREF: connects to: Securitization let bankers profit while dispersing loan default risk to distant buyers. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 181; Securitization let lenders profit without ever collecting repayments, incentivizing predatory subprime lending. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 225