Isn't this what they were more or less forbidden to do, when the government forced them to be politically correct?
>>>I’m just asking banks to be smarter and act in the interest of their shareholders, by ensuring their secured loans are actually secured by sufficient collateral.<<<
***Isn’t this what they were more or less forbidden to do, when the government forced them to be politically correct? ***
To a large extent, yes. Banks were coerced by the CRA into making some bad loans.
At the same time, I am almost certain they made WAY more of these bad loans and lent WAY too much money even to people with good credit.
IOW, IMHO, the CRA and the ACORN and the Clinton Admin got the ball rolling on this mess, but when the banks started to realize (or believe) they could make a profit making these garbage loans they ran with it and deluded themselves into thinking that home prices would never stop rising.