Posted on 03/18/2011 4:58:33 PM PDT by Kaslin
Subprime Scandal: If the FDIC wants to be fair about suing Washington Mutual execs for "negligence," it should include politicians who supported the Community Reinvestment Act.
For that matter, it ought to include all the bank examiners — including its own — who enforced the reckless anti-discrimination regulation. The CRA pressured WaMu and other FDIC-insured banks to make the risky loans the FDIC now accuses them of "negligence" in allowing.
In its lawsuit, the agency says top WaMu officers acted with "reckless disregard" in adopting lending policies that caused the bank to make home loans "with little or no regard for borrowers' ability to repay them."
What gall.
The post-Clinton CRA ordered WaMu and other banks to adopt "flexible underwriting practices" and to target low-income borrowers in "predominantly minority neighborhoods." If they didn't pass the government's lending test, they couldn't expand.
So banks scrambled to originate subprime and other urban loans that would impress CRA regulators and the inner-city activists who influenced their decisions.
(Excerpt) Read more at investors.com ...
This is BS. Most of the loans they made were for high-priced houses in the suburbs, to people who couldn’t afford them.
If the do I hope they include Jimmy Carter as having to sit in the defendant’s dock.
They shouldn’t be suing WaMu, since WaMu didn’t cost them anything.
You need to start somewhere and this is as good as any, when are they going after the appraisers.
It was the whole system. The banks, the appraisers, the real estate agents, everyone, including the dumb asses that paid twice what their house was really worth thinking that was okay.
WAMU was solvent when “closed.” It was given to JPM to keep them from going under. Government sponsered bank robbery.
PROJECT WEST
http://answers.yahoo.com/question/index?qid=20100526085623AAZBnDl
You’re welcome
What say we round up these criminals for a start.
Bill "Sploogie Man" Clinton
Janet "Rachel Maddow's Mom" Reno
Deval "Useless Tool" Patrick
Jamie "The Traitor" Gorelick
Franklin "Mo Money" Raines
Barney (thinks Calamari looks like chewy anuses) Frank
Maxine "Water Head Baby" Waters....
I can't go on.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.