Looks like Eliot Spitzer saw this financial mess coming and was trying to do something about but the Bush Administration blocked his and other state attorneys generals. And we want to trust the plan the Bush Administration purposes to fix the problem they created?
t r u t h o u t | Eliot Spitzer | Predatory Lenders’ Partner in Crime
Predatory Lenders’ Partner in Crime
By Eliot Spitzer
The Washington Post
Thursday 14 February 2008
How the Bush administration stopped the states from stepping in to help consumers.
Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers’ ability to repay, making loans with deceptive “teaser” rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.
Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.
Predatory lending was widely understood to present a looming national crisis. READ the whole article —>