“Wasn’t it you that said that investment banks didn’t come under the purview of the Federal Reserve until Bear-Stearns failed in 2008? And I had to correct you that investment banks were already blending with commercial banks from 1999 onwards.”
It’s hard to “correct” something I wasn’t addressing, other than apparently in your imagination. IBs and commercial banks that had merged prior to 2008 became bank holding companies, regulated through their commercial side. Investment banks were still just investment banks, unregulated by the Fed until a number of them converted into bank holding companies in 2008 to gain access to funding.
“Wall St. sold the fraudulent bonds...”
Bonds are securities. Being securities they come under the SEC, the Securities Exchange Commission, and not the Fed.
“had them highly rated by the leading bond rating agencies”
The rating agencies, NRSROs, have special standing under law and are connected with the SEC, not the Fed. The Fed does banking, not securities.
“Wall St. created CDOs, CDOs Squared, Credit Default Swaps, and other assorted defective fraudulent crap...”
CDOs and CMOs are bundles of mortgages sold as securities. They’ve been around since the 1980s. Securities, SEC, not Fed.
Credit Default Swaps are options that Congress saw fit to keep from being regulated via the CFMA 2000. The other derivatives you mention are similarly unregulated, but if they were they would come under the SEC and not the Fed.
“The Fed allowed mortgages to be financed by Wall St. Bonds instead of deposit accounts. Mortgages had been a product of commercial banks. Wall St. had to purchase banks to get at the mortgages and they proceeded to rape banks while the Fed watched. “
Wall St bonds... again that’s the SEC, not the Fed.
And there has never been any law restricting who finances mortgages anyway. The Fed has zero say in how mortgages get financed.
“The Fed could have stopped all this at anytime because of their regulatory power in the commercial banking industry.”
No, especially since the majority of lending during the bubble came from sources outside of commercial banking.
“They could have ordered an immediate halt to exotic bond financing of mortgages.”
I have no idea what you mean by “exotic bond financing” despite once having passed the Series 7 exam. But again bonds are securities, and securities are SEC not Fed.
“What does that tell you about the effectiveness of Glass-Steagall which protected homebuyers for nearly seven decades?”
Nothing, since Glass Steagall was the Emergency Banking Act of 1933 and had nothing at all to say about mortgages. Glass Steagall was intended to protect the banking system by keeping commercial, deposit-taker banking separate from investment banking.
“I’ve seen groups of Fed lovers cluster on these threads for years now trying to defend the indefensible.”
Considering your confusion over the role of the SEC versus the Fed it’s possible that you haven’t much of an idea of what they are saying. And the Fed is just one of a plethora of federal banking regulators.
Forget it, he's rolling.