--- title: "Meaning & Key Takeaway of: Long Beach Savings was the first existing…" description: "\"“Long Beach Savings was the first existing bank to adopt what was called the “originate and sell” model. This proved such a hit—Wall Street would buy y..." image: "https://sms4smile.com/quotes/i/fa9/michael-lewis-705_customer_long-beach-savings-was-the-first-existin_301474.jpg" --- # Long Beach Savings was the first existing bank to adopt… ![“Long Beach Savings was the first existing bank to adopt what was called the “originate and sell” model. This proved such a hit—Wall Street would buy your loans, even if you would not!—that a new company, called B&C mortgage, was founded to do nothing but originate and sell.” quote by Michael Lewis](https://sms4smile.com/quotes/i/fa9/michael-lewis-705_customer_long-beach-savings-was-the-first-existin_301474.jpg) [Download](https://sms4smile.com/quotes/i/fa9/michael-lewis-705_customer_long-beach-savings-was-the-first-existin_301474.jpg) [Open image](https://sms4smile.com/quotes/i/fa9/michael-lewis-705_customer_long-beach-savings-was-the-first-existin_301474.jpg) > ““Long Beach Savings was the first existing bank to adopt what was called the “originate and sell” model. This proved such a hit—Wall Street would buy your loans, even if you would not!—that a new company, called B&C mortgage, was founded to do nothing but originate and sell.”” [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The quote illustrates how a bank pioneered selling loans to investors, creating a profitable model that spurred a new firm to specialize in that practice. **In simple terms:** A bank sold loans to investors, inspiring a new company to do the same. Key Takeaway Recognize how financial innovations can spawn entire industries. Themes finance innovation market dynamics risk transfer Mood analytical critical cautious Type historical industry commentary When to use this quote - banking - investment firms - real estate financing - regulatory review - strategic planning Key Concepts origination securitization secondary market business model replication Questions to Reflect On - What are the long‑term effects of separating loan origination from ownership? - How does this model affect borrower accountability? A Different Perspective It may overlook the systemic risk of detaching lenders from loan performance. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Long beach](https://sms4smile.com/quotes/about/long-beach/) [Recession](https://sms4smile.com/quotes/about/recession/) [Wall St](https://sms4smile.com/quotes/about/wall-st/) [Wall street](https://sms4smile.com/quotes/about/wall-street/) ## Related quotes > [“By early 2005 all the big Wall Street investment banks were deep into the subprime game. 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