Federal Reserve Ignored Evidence Of Mounting Crisis In Subprime Lending

Washington Post:

But during the years of the housing boom, the pleas failed to move the Fed, the sole federal regulator with authority over the businesses. 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.

Read the whole story: Washington Post

Comments

[jerrypl]

The Fed has been engaged in what appears to be a huge Ponzi scheme and fraud against the US government and people. They "ignored" calls for oversight and regulatory actions because they wished to create a housing bubble that made their elite comrades extremely rich before it all exploded. That has been their objective. Just listen to Greenspan and his support of bubbles and laissez faire business approaches. There is no free market only Beranke's manipulation of them. This has all been a conspiracy to funnel huge sums of money into the pockets of the financial cr*ime syn-dicate members at the expense of the real economy and working Americans.

The American people must act because no one appears to be interested in really reforming the system.

See how: http://www.youtube.com/watch?v=QmFzeaqMu8U

http://eye-on-washington.blogspot.com

[Viper]

Never mind where the jobs are from a six month stimulus plan of which 250 billio has been spent (much is food stamps and tax cuts).

What I want to know is where are Millions of jobs you said that the trillions in Repug tax cuts were going to create during the past 7 years....

No net private sector jobs created here (actually a loss)... But milions were created along with shiny new factories in China by American Corporations who got those tax cuts and then moved 7.5 million MFG jobs there.

Regards

[Siebenstein]

Looking at that picture and reading this article (one of thousands) the Eagle starts to look like the one that was "watching over the Thousand Year Reich" :-(

[shivasquest]

Geithner was the head of the fed in new york.He knew what was going on.

[Siebenstein]

That is why we need to start thinking real hard why Obama put him in the position he is in right now.

I do not understand how so many people can get so exited about electing a president, donating money, time and emotions, but can't do the same thing for themselves , aside from any political party, in order to fight for our rights.

We need to lift our behinds and get rid of all the corruption, lies, and antisocial governmental behavior thats ripping people of their civil rights, life savings, homes, and health care.

Its mindblowing.

Macchiavelli was probably right.

[billyfitz]

"The Fed is essentially financing risk taking with taxpayer money and allowing the high returns from high risk to bypass taxpayers. If a private institution rescues a distressed investment bank from imminent collapse, it will end up owning the entity and all its future profits. But all taxpayers got was a repayment of the Fed loans with low interest and warrants to buy stocks in the banks at a set price over ten years, while the investment bankers walked off with huge bonuses even when their banks were losing money. While the government is reported to have made a $4 billion profit from its rescue investments of $700 billion, analysts say that private investors would have realized a $12 billion return by paying market price rather than the bloated price that the government paid."

- Henry CK Liu

This says it all. The banksters robbed us blind with help from the Treasury and the Fed. How was this not a crime?

[Viper]

But yet repugs are fighting still against increased Regs, consummer protection (as they fought against loan counsoling in 2003) and against exec salary caps or high end much higher tax brackets to bring this greed into just 1980 levels.

Regards

[CanuckEast]

I guess that now would be the time to close the barn door.

[cbat]

Wow this is good stuff. I wonder who was president when all this was going on, oh wait Bush.