So he is trying to pawn off 100% of the problem on the defaulters (which is a big chunk, but not the whole issue). What about the $Billions of basically phony paper known as derivatives that were bought and sold without the REAL capitol to make good on that trash paper. When those funky sales were made while trying to use 80:1 leverage... it doesn’t take but a small straw or hiccup to bring the whole fragile ball down.
The derivatives are where regulatory function failed completely.