“It was the regulators, not the banks, who relaxed these standards”
Apparently you don’t realize that the 11 member banks are the majority vote on the Federal Reserve.
Did you read the entire article? --about the pressure that was brought to bear by special interests and pols? And certainly the banks had something to gain from this too, but that wasn't the main contributor to the mess.
Nice work, Joanie.
First off a very minor correction. You wrote “Apparently you don’t realize that the 11 member banks are the majority vote on the Federal Reserve.”.
Actually the Board of Governors consists of 7 appointed Governors for the systema and 5 Governors drawn from the Member banks. They rotate in.
Your larger point is correct. Here is my question: what law gives the Federal Reserve Bank the power to sieze and buy Insurance Companies? Unlike most normal people I’ve read the entire Federal Reserve act and it is all about BANKS not random companies in other industries. What’s next? Fed buys GM?