1) As part of a money laundering action…
… purchasing of some savings and loans of poor value, because burdened with non-performing mortgages
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2) purchasing of a small domestic insurance company, to be paid for with loans from the savings and loans
3) swapping the non-performing mortgages from the savings and loans for good bonds held by the insurance company
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the savings and loans are now collateralized with profitable paper, making them very attractive, while the insurance company is sitting on a portfolio of non-performing mortgages
4) forming an offshore re-insurance company
5) writing off to the re-insurer the premiums owned by the insurance company, sending them straight back to the offshore trust.
6) solding for a handsome profit the savings and loans while the insurance company is doomed to go bankruptcy .