Get Rid of Fannie and Freddie!
While the Dodd-Frank financial reform bill, which, according to one of its designers, will prevent financial crises in the future, didn’t even mention the primary instigators of the subprime mortgage catastrophe, Washington is now finally wondering what to do about the government-sponsored enterprises known as Fannie Mae and Freddie Mac. Together, these benevolent institutions either provided or purchased half of all subprime mortgages in the | Read More »
Democrats Blame Deregulation For Crisis
The Financial Crisis Inquiry Commission (FCIC) that was established in the spring of 2009 to explore the causes of the previous year’s financial meltdown, released its findings today. What was to blame for the crisis, they say? Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting | Read More »
OMB Director Candidate Says Deregulation Didn’t Cause Crisis
The Huffington Post reports that former Citigroup executive Jacob Lew, the administration’s nominee to lead the Office of Management and Budget, told Senate Budget Committee this Thursday that deregulation was not exclusively to blame for the financial meltdown and recession. Lew was asked by Senator Bernie Sanders of Vermont whether he believed that the “deregulation of Wall Street, pushed by people like Alan Greenspan [and] | Read More »