Posted on 11/30/2016 10:22:52 AM PST by SeekAndFind
It appears Elizabeth Warren does not think too highly of President-elect Donald Trump's nomination of Steven Mnuchin for Treasury secretary.
In a statement, the Massachusetts senator said Mnuchin was involved in the worst kind of lending practices that led to the financial crisis during his time as head of mortgage lending at Goldman Sachs.
"Steve Mnuchin is the Forrest Gump of the financial crisis he managed to participate in all the worst practices on Wall Street," Warren said in a statement, according to Politico's Ben White.
"He spent two decades at Goldman Sachs helping the bank peddle the same kind of mortgage products that blew up the economy and sucked down billions in taxpayer bailout money before he moved on to run a bank that was infamous for aggressively foreclosing on families."
Warren's comparison of Mnuchin is to the 1994 Oscar-winning film Forrest Gump, in which Tom Hanks stumbles in and out of historical moments from the 1960s onwards as the eponymous Forrest.
Mnuchin worked at Goldman Sachs for 17 years and left the bank in 2002. During his time he oversaw the mortgage-lending department as it delved into such products as credit default swaps and collateralized debt obligations.
He later founded his own private-equity firm, Dune Capital Management, which in 2009 purchased the distressed-mortgage lender IndyMac, which was renamed OneWest. The firm and Mnuchin have been accused of unfair lending practices including discriminating against minority borrowers and aggressive foreclosures.
(Excerpt) Read more at businessinsider.com ...
“If you get a loan for a car and then decide you dont want to pay it anymore, thats not the banks fault.”
The original lending bank was not the problem. They were just making the loans that Fannie and Freddie said F&F would purchase. And the loans the CRA pressured them into. So that’s on Fannie and Freddie and Congress.
Where the banks got re-involved and where they share some blame is when they started creating derivatives out of the tranches they bought from F&F.
“Good point, but will no doubt fall on deaf ears: If the crisis was limited to the value of the mortgages, the banks could have absorbed the losses, or plain old go bust without hurting the overall economy. But since they had been collateralized into garbage financial instruments like derivatives, eseentially bets on bets on bets...they had to be bailed out. And will be again.”
I know. I’m starting to thing the whole FDIC/bank regulatory thing has failed completely. Maybe we ought to be working a system where anyone can be a bank. Only requirements are daily financials posted online and then use things like yelp and rating services so that consumers can protect themselves. Some of the banks could have insurance for deposits and advertise that for risk averse consumers. Others could pay higher interest but not be as well insured.
They really like to call people names, don’t they.
The childishness displayed by democrats should convince everyone never to let them be in charge again.
——Didnt she make a fortune off of buying foreclosed houses in Oklahoma?-——
And she made a bigger fortune building tepees
——Didnt she make a fortune off of buying foreclosed houses in Oklahoma?-——
And she made a bigger fortune building tepees
Hmmm...maybe Lizzie is confusing Mnuchin with W and McShame.
No
Your question is not well done either
Appypappy reply is about perfect
Bundling has been around forever
Is it wrong for me to wish that she walks out in front of an MBTA bus?
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