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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (2195)	9/7/2008 5:32:21 PM
From: Brumar89	Read Replies (1) \| Respond to of 86356

They're "government sponsored entities". Where was the F'ing regulation if they were 'government entities'? Its subprime mortgages that had the default problem. That problem has pushed down home prices, especially in some parts of the country - not much here for example - which has caused losses for the "government sponsored entities". As for regulation, do you think Clinton blundered in signing the repeal of Glass-Steagel in 1999? Granted, there were Republicans in Congress that favored the repeal too. en.wikipedia.org Or maybe you think the Community Reinvestment Act which encouraged lending to low quality borrowers was a bad idea, especially the changes to the act sought by the Clinton administration? it was that change to the CRA which brought about the securitization of subprime mortgages: In 1995, as a result of interest from President Clinton's administration, the implementing regulations for the CRA were strengthened by focusing the financial regulators' attention on institutions' performance in helping to meet community credit needs. .... The 1995 revisions were credited with helping to substantially increase the amount of loans to small businesses and to low- and moderate-income borrowers for home loans. Part of the increase in the latter type of lending was no doubt due to increased efficiency in the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. The first public securitization of CRA loans started in 1997. [1] en.wikipedia.org