You got it 100% backwards
The banks were FORCED to make these bad loans.
Barney Frank and Chris Dodd made the rules that said that banks had to make loans to lower income people. But the banks were not doing it- they refused.
Then Andrew Cuomo came along and sued one of them for ‘discrimination’, and won what was the single biggest judgement in history (at the time) $$Billions.
Then the banks saw the light- They either made the loans and lose some money, or get sued and lose billions. And the government was going to guarantee those loans anyway, so.... the made them.
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This is also why the banks got bailed out. They would have spilled their guts about this otherwise.
Ya mean the same Frank and Dodd who have deep connections to banks. They didn’t force the banks to do anything the banksn didn’t want them too.
Thats why the banks spent so much money and had all the right people on their Boards.
Banks were not forced to do one thing, as long as they sold them to fanny and Freddie, you would take the majority of the hit, and with off setting bets they thought there was no way they could lose, the value of real estate would go up forever.