Fed Held Back As Evidence Mounted On Subprime Loan Abuses

Washington Post:

Under a policy quietly formalized in 1998, the Fed refused to police lenders' compliance with federal laws protecting borrowers, despite repeated urging by consumer advocates across the country and even by other government agencies.

The hands-off policy, which the Fed reversed earlier this month, created a double standard. Banks and their subprime affiliates made loans under the same laws, but only the banks faced regular federal scrutiny. Under the policy, the Fed did not even investigate consumer complaints against the affiliates.

Read the whole story: Washington Post

Comments

[BorseGermany]

The disconnect between the problems facing main street and Washington keep widening. For the past year we've heard nothing but talk of regulation, but zero action. What a joke.

good articles... http://www.iamned.com

meanwhile, the stock market is surging and everyone is too busy to counting their money to show any initiative

[bluecollarblogger]

The Fed even after recomendations from concerned groups refused to intervene and investigate the practices of these banks, why? These banks were no different than high classed loan sharks, loaning the majority of these high risk loans to blacks and hispanics. Gouging the consumer, know ing that the loans would be federally insured and it was a win win. Why did the Fed refuse to do anything, because these banks own so much federal debt, the fed needs them. Tee off the money train.......don't think so.

[Stretchumall]

I support massive taxes on the wealthy.
If they truley earned their wealth they won't mind paying taxes on it as they can continue to earn those amounts.

[SaneBull]

Yay stocks surging on Wall Street. Lets forget about high unemployment, wall street greed & corruption, and heath care reform. Happy days are here again for the rich, while everyone else goes though the same $h1t everyday.

good articles; http://www.iamned.com

Ppl have no money, no heath care, no home, no job, no sanity.

[kid5rivers2]

Bailout me! A commentary in calypso courtesy Trinidad and Tobago.

http://www.youtube.com/watch?v=CCA5Gzl-4DE

[PhilipTaylor]

FED Reserve is the Orchestra Leader in the Bubble and Bush Economy!

Gov+Consumer spending financed by Massive DEBTS to Private Banking = Disaster

FED = Major Reason that America #1 Debtor Nation

1. Restrict or Ban Fractional-Reserve Banking = illegitimate Fiat DEBT Practice = embezzlement
2. Replace FED Debt-Currency with debt-free currency issued by US Gov = Lincoln Greenbacks
3. Government spends Debt-Free Currency into economy to soak up debt to give America a NEW Start!
4. Empowers Government to direct the economy toward sustainable solutions
5. Gov. Issue repayable interest-free credit to fund infrastructure+sustainable social projects
6. Removes FED DEBT GENERATION = Frees working people from bonds of "debt s1avery"
7. Removes environmentally damaging consumerism = sustainable economic business practices

Audit FED Reserve System to reveal its almost 100 years of Support for Bubbles/Busts and DEBT.

Who should do the Complete Audit of the FED Reserve System? GAO, SEC, Justice, FDIC, Barofsky, and other relevant or interested Agencies! Multiple Reports!

[unionave]

Good points !
The Fed has many so called well paid monetary analyst working there so one would think they would have at least noticed that Wall Street was venturing in to never-never land with the life savings of millions of people .

[ibsteve2u]

"...the Fed refused to police [...] compliance..."

The real legacy of the right's deregulation efforts can be read in this story:

http://www.bloomberg.com/apps/news?pid=20601092&sid=afX0BWHToC1g

[bq]
Sept. 18 (Bloomberg) -- The U.S. Secret Service is examining more than $100 billion of U.S. government bonds confiscated in northern Italy in August, just two months after $134 billion of allegedly fake securities were seized in a nearby town.
[eq]

The bad-guys-that-don't-work-on-Wall-Street are carrying around fake "securities with face values of $500 million and $1 billion"!!!

The very fact that they believed that they could move them screams that the result of the Republican efforts to legalize criminality is that America's financial system is riddled with holes big enough to drive $100 billion+ through at a time.

Perhaps you understand, now, why the Republicans and the banks would prefer to keep America focused on Acorn?

(I found the story's words: "The two men later disappeared..." to be....curious...)

[WIpatriot]

The ruling elite toss out dozens of distractions for the populace to get all riled up over while the greatest theft in history continues unabated.

[Chazmania]

There is a clear and present danger to our rights freedoms and security. And it is not from abroad as much as it is our own government in collusion with the new international banking mafia

[Chazmania]

The cost of doing nothing will be enslavement. it is happening in small ways every day until it will be to late to stand and demand anything! Conspiracy? are you willing to take that chance?

[Chazmania]

http://www.youtube.com/watch?v=bLCHWhmyn8w&NR=1

[Chazmania]

http://www.youtube.com/watch?v=hEZfMruLMSI&NR=1

[FreedomCorpse]

The Office of Federal Housing Enterprise Oversight sent repeated warnings to Congress in 2003 and 2004 warning of a systemic crisis in the housing markets (archived on their website). What happened?...Bush fired the director and replaced him with a 'see-no-evil, hear-no-evil' crony. The warnings were fed directly to Congress and nothing was done....so the only logical conclusion is that this crisis was a planned event.

[venusvictrix]

Yes, of course it was.

But realize that the foundation for the plan preceded Bush by a number of years. It all really dates back to the time Greenspan was appointed Chairman of the Federal Reserve, in 1987.

It may have actually started before then, but it was after Greenspan's appointment that all the rules about banking and finance really began to change. He put things in motion, and helped usher in this era of "irrational exuberance".

[sonofsamphm1c]

Nobody before Bush ever ordered 5.5 million houses be built for minorities, and nobody ever asked the private sector to invent creative ways to get them financed.

Own the ownership society. It won't hurt - much.

[OneLiberalLady]

Why would they plan it...that doesn't make any sense unless they knew the next administration would be Democratic?

[sonofsamphm1c]

It would not even make sense in that case. There was no plan.

[PhilipTaylor]

AUDIT and uncover the SECRETS of the FED Reserve!

Who should do the Complete Audit of the FED Reserve System? GAO, SEC, Justice, FDIC, Barofsky, and other relevant or interested Agencies! Multiple Reports!

[venusvictrix]

Absolutely! Multiple eyes and ears on this problem . . . . that’s what we need, and why a single regulatory oversight entity is the wrong solution to our financial system’s current problems.

By the way, thanks for the very disturbing OCC report regarding derivatives. http://www.occ.gov/ftp/release/2009-72a.pdf
This should be required reading for everyone.

It’s especially shocking given that the report doesn’t cover the full extent of non-bank derivatives exposure in our financial system. How much exposure do you think is embedded in our nation’s money market funds ? (or perhaps you know, and if so, I’m interested)

[Chazmania]

The information is out there. its the people in this country and the world that refuse to acknowledge it.

http://www.youtube.com/watch?v=JBAwQM2agZU&feature=related

[Rule Of Law]

The very same FED that Obama in all his wisdom wants to give new, far reaching powers to.

The same FED that did such a great job this time.

Do I even need to ask whassup with that?

[venusvictrix]

Just realize these guys have made no mistakes. Everything is going according to plan.

[Chazmania]

This is eerily the truth. and i think far to sinister to except for a lot of people

[The Professor]

If the elite media is behind the movement, then Congress will investigate.

[Chazmania]

That is why it wont happen. we are not only victims of corruption and banking cartels but a media that is bought and paid for by the same corrupting force.

[viperhawk2k4]

REVOLUTION!

[WeMustSpeakOut]

and we had better hurry.

[thegirlnextdoor]

And this entire bank balloon profit thing is why the economy has tanked and why 52% of young people can not find work. It is a system where greed profits and the rest of us just get screwed.

[Mildmannered]

Why are we propping up "zombid" banks that are not healthy enough to make new loans and get the economy growing again?

[Mildmannered]

zombie

[sonofsamphm1c]

Can you name a "zombie" bank that is not making new loans?