 Quote:
Originally Posted by Running_Man
This is absolutely a total falsehood. There may have been some toothless guidelines issued but there was no enforcement and the banks did not stay out of the business. Of the top 10 originators of subprime loans you have Citigroup, Merrill Lynch, Countrywide, Wells Fargo and Washington Mutual. They then took these loans and had Wall Street package them all over the world in tranches. If you read the story you will see Wells Fargo originated 23 billion in the 3rd quarter of 2006 in subprime loans to lead the country. I don't see restraint there!?
You had Greenspan and Bernake state they never realized the troubles until it was too late. Bernake thought all was well and waited until April of this year to ask for some more oversight. Greenspan never saw any problem.
At the same time Goldman makes a fortune shorting the very loans they packaged. To claim this all happened outside the main banking area is totally misleading and a false claim you have been making from the beggining of the subprime mess. Yes there were a great many mortgage companies making loans but it was the big players who gave the impression to all that it was a profitable and good way to finance housing.
To look at a chart of the amount of subprime lending up to 2006 and I do not see a definition of restraint. I believe 20 percent of all loans were subprime in 2006.
Top 10 subprime originators slanted toward West Coast - MarketWatch
Bernanke Believes Housing Mess Contained - Forbes.com
Greenspan defends subprime market - CNN.com |
Of the top 10, it appears to me only 3 are regulated... and they might have been subs that were not in the "banking system" so they might not have been either...
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