[TINS]

What does political correctness have to do with bank failures? The banks weren’t forced to lend to anybody.

[groanup]

The banks weren’t forced to lend to anybody.

You're forgetting the Community Reinvestment Act of the 1970's which activists used as Damocles sword over the heads of bankers throughout the 80's and 90's to force lending to sub prime borrowers.

Very often the opening of new branches and/or the outcomes of merger deals hinged on the compliance with the Act.

It was sheer blackmail and the banks had no choice but to lend. At least for a while they were able to package that sh^^ into securities and sell it off.

[BnBlFlag]

“The banks weren't forced to lend to anybody”.
Oh, but they were. Have you ever heard of the “Community Reinvestment act”? If you only lend to excellent credit risks, you would end up with a strong loan portfolio but that would largely exclude minorities who typically have poor credit. That is unacceptable to the Congress and the bureaucrats. Banks were basically forced to lend to these poor risks to show that they were not “discriminating”. Upon threat of a “visit” by the Justice Dept.

[AmericanDave]

‘The banks weren’t forced to lend to anybody.’

Maybe....