No Wonder Chuck Prince Got Fired

This is GREAT! Follow along. Big Bank A helps Investor B buy Company C by arranging very large loans that are favorable to B. So favorable in fact that Investors X, Y, and Z that have heretofore bought these loans from A have reconsidered and stopped buying. So A is stuck with the loan on its balance sheet and now has to figure out how to mitigate the risk. So what do you do if you are A? How about make additional loans to B so that B can buy those assets from A at a 5% discount!

Here's my question? If no one bought the first round of loans and holding the loans is unacceptable practice, will the second round of loans be offered to B at a discount and will that sale be financed by a third round of loans? And if no one bought the first and second round of loans...

And why precisely does financial capitalism have a bad reputation?