I think it's funny that you " work in finance " and still have to rely on manufactured narratives created by the Democrats to explain why we had a Financial crash in 2008.
IB's were buying GSE debt, " AAA " rated securities backed by toxic assets and then selling it on. IBs couldn't compete with the GSEs mainly because the GSE's debt was rubber stamped as " AAA ". Because of that they had a major advantage of any private investment firm.
Consider that the GSEs were exempt from paying local and Federal taxes, had access to a 4 Billion direct line of cheap credit straight from the US Treasury that no Bank could touch, could operate with Capital requirements as low as 2% ( or nothing ) who were exempt from SEC reporting requirements ( all US publicly traded companies have to submit quarterly reports to the SEC ) and who were protected Politically by the Democrat party right up until they were declared insolvent in 2008.
The Democrats have been trying to minimize the influence of the GSEs in the run up to the 2008 Financial crisis for the last 7 years. Democrats claim their participation was minimal, that the GSE's were taken advantage and threatened by larger and more powerful private institutions.
There was no Financial institutions more powerful and influential that Fannie and Freddie and the GSEs were intimidated by no one. They had a unending free flow of cash, answered to no one and their debt was rubber stamped " AAA "
Part of QE was to purchase MBSs. I believe the FED wanted to purchase 1.2 Trillion dollars worth of MBSs from the portfolios of private institutions. Everyone of those MBSs was a GSE security. A security that was sold off as a " AAA " rated security by the now insolvent Fannie Mae and Freddie Mac that now are backed by assets in default. Worthless.
The people who want " Bankers Prosecuted " are relying on empty partisan narratives instead of objective research to come to that conclusion. The only two major financial entities to be investigated by the SEC for their participation in the 2008 SUb-Prime crisis were Fannie Mae and Freddie Mac and for good reason.
http://www.nytimes.com/2004/09/23/business/sec-opens-investigation-of-fannie-mae.html?_r=0
https://www.sec.gov/news/testimony/2006/ts061506cc.htm
https://www.sec.gov/news/press/2011/2011-267.htm
The Democrats would LOVE to perp walk a few Bankers to strengthen their narrative that the Banks caused all of this. For some reason all they have are their baseless claims to fall back on.
Well, we've been posting back and forth on this issue for some time now and you have yet to successfully counter one thing I've said. Ill offer the same challenge I offer to everyone else who challenges me on this issue.
If I'm wrong then prove me wrong and no, repeating debunked Democrat talking points isn't going to cut it.
Hey. it's not my fault the Democrats chose to defend the indefensible by sticking up for the two most corrupt Financial entities involved in the Sub-Prime crisis. It's not my fault the Democrats chose to shakedown our Nations lending institutions under the pretense of " fairness " and righteousness ".