“The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.”
So the Federal Government is authorized to make the same mistakes Bear Stearns made.
The deregulation of the banking system under Clinton was the single biggest act of bipartisan stupidity in US history. This act however will instantly take over 1st place.
“The deregulation of the banking system under Clinton was...”
A myth on two levels:
1. The system was not ‘deregulated’
2. There are other real causes of this mess, and that wasnt it.
The 1998 bill did some good in modernizing regulations and recognizing that the system of the 1990s was different from 1930s. But we need further modernization of regulations and the calls to unify the hodge-podge of regulatory agencies looks like the way to go.