Sunday, December 21, 2008

White House philosophy stoked mortgage bonfire - International Herald Tribune

The president also leaned on mortgage brokers and lenders to devise their own innovations. "Corporate America," he said, "has a responsibility to work to make America a compassionate place."And corporate America, eyeing a lucrative market, delivered in ways Bush might not have expected, with a proliferation of too-good-to-be-true teaser rates and interest-only loans that were sold to investors in a loosely regulated environment."This administration made decisions that allowed the free market to operate as a barroom brawl instead of a prize fight," said L. William Seidman, who advised Republican presidents and led the savings and loan bailout in the 1990s. "To make the market work well, you have to have a lot of rules."But Bush populated the financial system's alphabet soup of oversight agencies with people who, like him, wanted fewer rules, not more.
White House philosophy stoked mortgage bonfire - International Herald Tribune
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