Yeah, the greed was on the part of those running the gov’t backed loans at Fannie & Freddie (read: DEMOCRATS).
They were telling all the brokers that they’d buy ANY loan they made to minorities, no matter how unqualified they were.
See, the DEMOCRATS that were running F & F restructured the pay scale so that they got bonuses based on the portfolio size - how many loans were on the books.
Please, no doubt there is plenty of blame to go around. However, the financial sector must accept the lion’s share of the blame...they did it. They can not be trusted and new regulation-not bs stuff-but real reforms are needed. By the way Merril CEO wants an 10 million dollar bonus...while workers are being let go. This stupid crap needs to stop. One of the most important reforms would be to give stockholders the rights they once enjoyed over how much these CEO’s are paid and the direction of the company.