The banks were not *forced* to give these loans—they *chose* to buy into the gov’t get richer scheme. Many banks took a pass, and they survived just fine.
Having sat in the boardroom during half a dozen bank mergers in the late nineties, I can assure you that you are incorrect. The government was adamant about making sure the CRA was part of every banks plan. If you did not play ball, you would lose the approval required to keep the business growing.
There are facts on paper- and there is the reality of the world. It is easy to say there were choices because the rules said there are. The reality is that the small banks that “choose” not to play ball are either still really small and limited, or they are out of business.