They were warned but eased loan rules anyway
WASHINGTON (AP) -- The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents. Full Story »
Posted by Stephen Pizzo
Republicans have been trying to blame the mortgage crisis on Democrats who insisted on making loans to the poor and others with low credit standing. This story blows that dodge out of the water. The Bush administration was warned but instead of regulating lenders let them run wild. Now taxpayers are bailing those same lenders out.