true they can’t be forced to do it, but there are repercussions if you do not. NCNB was at a point where they had to have regualatory approval of expansion and accuistions-in order to execute their business plan they had to have the approval of the federal banking regulators-who left them no choice but to make the loans.
The banks were “forced” to make these loans only because of the loss of potential profit in not making them. The CDO market along with swaps to insure them enabled banks to offer more credit by freeing up reserves. The Dems got their sub prime loans through deregulation wanted by the Repubs, they both got campaign contributions for re-election, the bankers made great a great bonus on every new transaction and we got screwed.