Friday, March 23, 2007

Regulators Scrutinized In Mortgage Meltdown / WSJ

click on the headline to read the full story. i suggest to read the minyanville summary!

für die vollständige geschcite bitte auf die überschrift klicken. ich empfehle die zusammenfassung von minyanville.



The well-publicized woes in the business of subprime mortgages -- a surge in foreclosures, turmoil in the stock market -- are raising a big question: Are regulators partly to blame?

Federal regulators over the past decade issued rules to tighten standards for making loans to borrowers with blemished credit or low incomes. Yet standards still declined and the volume of loans surged in the past two years.


One reason: Changes in the lending business and financial markets have moved large swaths of subprime lending from traditional banks to companies outside the jurisdiction of federal banking regulators. In 2005, 52% of subprime mortgages were originated by companies with no federal supervision, primarily mortgage brokers and stand-alone finance companies.

Another 25% were made by finance companies that are units of bank-holding companies and thus indirectly supervised by the Federal Reserve; and 23% by regulated banks and thrifts.



here is what minyanville / kevin depew has to say http://tinyurl.com/2o3z3z

  • According to the Journal, Federal regulators over the past decade issued rules to tighten standards for making loans to borrowers with weak credit or low incomes.

  • But guess what? Despite that, lending standards declined and loan volumes surged anyway!
    Go figure.

  • Anyway, The Feds (and the Fed) are now intent on cracking down on the Feds responsible for this growing Federal debacle.

  • Sen. Christopher Dodd (CT-D) has been firing off letters to, among others, Federal Reserve Chairman Ben Bernanke, FDIC Chairman Shela Blair and Comptroller of the Currency John Dugan.

  • A Senate hearing on the matter will be held today and the House next week.
    Feds Fighting Feds!

  • It's like a civil war within a civil war waged by civil servants against civil servants.
    Next on the agenda? Civil suits.

thanks kevin!

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1 Comments:

Anonymous Anonymous said...

Look at the letter that Dodd sent to Bernanke. He asks for Bernanke's response in electronic format in WordPerfect. Are they still in business? Everyone use's MS Word today or if the Government had their act toget a free compatable program to Word. Our Government is a joke, complete idiots who waste money on items that are not compatible with with business uses today.

Then he asks Bernanke to print 73 copies. What a Fu**ink idiot. Every hear of a pdf and email. Or, why should Bernanke print them, Dodd is asking for them.

No wonder our Nation is going down the toilet. We need to get rid of every one of these incompetent assh**es. Politicians are a joke.

12:23 PM  

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