It’s a good article but Business Insider seems to lean left. No mention of Jimmy Carter originally signing the CRA. No mention of Bill, and Hillary, being behind beefing up CRA and ordering regulators to basically coerce the banks into following it or face regulatory action. Also no mention of W Bush warning of the impending crisis with Fannie Mae and Freddy Mac.
I knew the crisis was coming in 2003. Democrats in Congress didn’t want to hear it. Barry Soeto was one of them when he arrived in Washingto. Our current economy, and the collapse in 2008, was all due to Democrats demanding banks abandon sound lending policies in order to finance more minority house purchases.
http://georgewbush-whitehouse.archives.gov/news/releases/2008/10/20081009-10.html
Just so you know, the CRA under Carter had no teeth and just registered mortgage applicant information - it was Clinton and Cuomo at HUD that changed it to enforce subprime standards on lenders.
George W. Bush is not innocent and was on board with this until about 2005 when he voiced complaints which were ignored by Barney Frank and co.
“Also no mention of W Bush warning of the impending crisis with Fannie Mae and Freddy Mac.”
Dubya’s concern with Fannie and Freddy was with their capitalization ratio. His worry had nothing to do with the making of subprime loans. Dubya was a big fan of making subprime loans to minorities and he promoted the odious American Dream Downpayment Initiative for that very purpose.