21 Nov 2022 12:00 pm
You're conflating two different markets and two different systems. The CEO's of the investment banks with the mortgage writers. The mortgage companies loved the CRA because of the fees they could ring up. The invesent banks loved the availability of cheap, low rated, sub-prime mortgage paper that they could use to build their A rated loan bundle products.FOS » 21 Nov 2022, 12:27 pm » wrote: ↑ No fool. There were multiple agents involved in this. The people who simply wanted to sell houses had every incentive to ignore credit scores.
The people who relied on the banls operating well...like the ceos of banks...were perhaps not fond of this rule. and they would have lost their asses if they werent bailed out. But they were bailed out and probably knew they would be.
If you want to blame somebody for the 2008 recession lay off black folks and look at the rating companies like S&P and Moody's who rated this paper "A" when it wasn't. Why did they do it? Fear of the loss of business from the investment banking industry.
And who does FUZ wanna blame? Black folks.