You've come a long way from robbing banks.

So how does that work?

The bank alarm's gone off. A holdup.

You gonna rob a bank?

I'm John Dillinger. I rob banks.

What do you read? All about the big bank stickup!

We're now going to make all of our mortgage payments, the 10 payment, to this bank, this investment bank.

So essentially, these banks have a bunch of assets.

So let me delete this.

The bank has raised its dividend by 20 .

And if this is a loan from Bank B, Bank B would have an asset called loan to Bank A.

Whether people will continue to loan them money.

Get the latest news on the big bank stickup.

Extra! Extra! Get the latest news on the big bank stickup!

So now the Special Purpose Entity is the owner of the mortgages .

They'll sell the loans to like, let's say, Bear Stearns. So that's an investment bank.

What's it like being an investment banker?

But it's roughly the right number.

Yo, what did you do? Rob a bank?

He's been in trouble, yeah, but

People start shorting the stock, the stock go starts going down.

And so that cash ended up here.

Here's a description of the suspects involved in the armed robbery of the Southwest Bank.

The bank accommodated the company with a loan.

Papa went to the bank to ask for another loan.

Well, robbing banks is getting tougher.

And the risk was that your stock goes to zero.

How far did you ever get on that Southwest Bank job?

Then the number that pops out on the equity side, that is a book value of your equity.

Well I go to the bank.

Right?

They'll often say just like a big bucket of, they'll call them level three assets.

And of course, everybody who had loans to Bank A, maybe

Owns banks in the Caymans runs investment portfolios for offshore drug money.

The Bureau has apprehended kidnappers and bank robbers who have stolen up to and in excess of...

This is their current assets, and let's say that is is their liabilities over here, so liabilities, and then this is their equity, although the federal reserve's equity is a little bit strange, it's not like traditional equity, that they get all the excess profits and all of that, all the excess profits actually go to the US government.

So they did build some equity through housing appreciation, just the house didn't go from 100,000 to a 1,000,000, it went from 100,000 to 250,000.

That bank was held up twice.

The bank was held up last night.

A burglar broke into the bank last night.

He started at the bank in the post of manager.

Léila became an architect.

And maybe I should do a whole video on what sell side means, but since I said the word I'll tell you right now.

So what I'm squaring off in magenta, that's the assets of that bank.

They borrowed it from their local mortgage broker, who then sold it to a bank, or to an investment bank, who created the special purpose entity, and then they IPO the special purpose entity and raise the money from people who bought the mortgage backed securities.