Quote:
Originally Posted by Riot
 Nobody wants to "eliminate big banks"
"Prosecute the big banks" ? You bet! And prosecute the small banks that also break the law with illegal foreclosures and illegal lending practices.
That will leave the banks that work within the law to make those loans. |
I completely agree with you and although being a big bank isn't a crime, trading on inside info or fraud is. However I would like to go further.
We need to investigate the motives behind the government making Fannie Mae a government sponsored entity way back in 1994 complete with instructions to
'no longer view credit history as a negative and to take care to ensure standards are appropriate to the economic culture of urban, lower income and non-traditional consumers'. In other words give anyone willing to sign their name a loan and we'll back it. Our poor were duped. Like a car dealer barking no credit, no job no problem. Only there was a problem as they were unable to pay as soon as their home values stopped sky-rocketing because DUH, they had low incomes. Now is that the fault of lender, borrower or the person who lowered/changed the guidelines enabling approval. I go with the latter.
Government sucks more at business than they do as a portfolio manager and they may in fact be the match that set the mortgage world on fire and out of control and on purpose. Anyone who doubts this theory should investigate when the sub-prime loan business took off and why.
What was in it for the government? Ask Newt, Rahm or James A. Johnson the man who made $100-$200 million as CEO of Fannie in less than 10 years. The fact James A. Johnson was Walter Mondale's guy and Mondale's daughter was duking the US President that put him in the position is surely pure coincidence. However the most suspicious aspect is how evenly Dems and the GOP were involved. And anytime both are involved in anything but an argument, red flags and many of them should be raised and waved violently.