with loans to the value of 125% of the collaterall. And the price of the collateral based on the whims of rumour and fashion. Methinks the viability of banks that lend in such circumstances is a risk.
Risk is not the traditional home of banks.

Chickens coming home to roost is the correct description.

Now - how can we claw back the stipend of the perpetraitors? Seems that is more equitable, if unobtainable.