[linuxftw]

> but it is the very job of a bank to take credit risk, and to lend.

This used to be true, but isn't. The job of the bank to is play the spread. They take 0% interest loans from the Fed, loan the money to you, and then resell the loan into the market (aka, your 401k). This is why the subprime mortgage crisis was a crisis. Banks had almost 0 risk. Just let the credit rating agencies stamp AAA on the CLO, push it into the state of California's pension fund as AAA securities, profit.

If any bank is not selling the loan, they're taking a completely unnecessary risk.