Re: Former SEIU Official Reveals Secret Plan To Destroy JP Morgan & Crash Stock Marke
"...consistent with the safe and sound operation of such institutions..." That law was neither safe, sound or sane. It was retarded and proven so. It was another welfare program that went really, really bad despite warnings.
And here is Cuomo predicting loans would go bad.
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That's a load of BS from Fox News... Bret Baier
Fox News' Baier advanced conservative attacks on CRA, repeated falsehood about Rep. Frank | Media Matters for America
During the October 5 Fox News special
Saving Our Economy, chief White House correspondent Bret Baier repeated or failed to challenge numerous false assertions about the role of affordable housing initiatives in the financial crisis and Democratic responses to the crisis, including the following: the
false suggestion that banks were pressured under the Community Reinvestment Act (CRA) to lend to unqualified buyers, causing the mortgage crisis; a repetition of his
false suggestion that Rep. Barney Frank (D-MA) opposed strengthening oversight over Fannie Mae and Freddie Mac; the
false claim that congressional Democrats sought to give $20 billion in taxpayer money to a controversial community organization during negotiations over legislation to authorize the U.S. Treasury to purchase up to $700 billion in mortgage-backed assets; the
false claim that during a House vote on the bill, Speaker Nancy Pelosi's floor speech resulted in "10 to 20" Republicans deciding to vote against the bill; and the false claim that Democrats held the majority in the Senate in 2006 and caused a reform bill to "fail[]."
During the report, Amity Shlaes, a former
Wall Street Journal columnist and author of
The Forgotten Man: A New History of the Great Depression, claimed of the
CRA: "We want to have everyone be able to buy a house anywhere. We're going to lend to people of all colors. Nothing wrong with that. We're going to make sure those banks do it, and they don't discriminate. But the law went overboard. Institutions made loans that they probably didn't want to make, because they couldn't seem racist." But the suggestion that the financial crisis was caused by banks lending irresponsibly to comply with the CRA is
false. The CRA
applies only to depository institutions -- such as banks and savings and loan associations -- which have been
estimated to have issued approximately 20 percent of subprime mortgages. Further, a study released earlier this year by a law firm specializing in CRA compliance
estimated that in the 15 most populous metropolitan areas, 84.3 percent of high-cost loans in 2006 were made by financial institutions not governed by the CRA. In fact, Janet Yellen, president and CEO of the Federal Reserve Bank of San Francisco,
stated in a March speech that "studies have shown that
the CRA has increased the volume of responsible lending to low- and moderate-income households" [emphasis added].
During the Fox News special, Baier further claimed of subprime loans given to low- and middle-income borrowers, "[A]t the tail end of the Clinton administration, Fannie Mae was told to substantially increase the percentage of those mortgages in its portfolio." Baier later asserted, "In April 2001, during the Bush administration's first year, the White House saw danger on the horizon." Baier went on to discuss legislative efforts to enhance oversight of Fannie Mae and Freddie Mac, showing Frank's comments from 2003 on the issue. But at no point did Baier or host David Asman point out Frank's
efforts in 2005 and 2007 to pass legislation in the House to provide greater oversight of Fannie Mae and Freddie Mac. Moreover, neither Baier nor Asman pointed out that in 2004, the Bush administration
increased Fannie Mae and Freddie Mac's affordable housing goals from 50 percent to 56 percent. Indeed, in a June 10 article,
The Washington Post reported that in 2004, "President Bush's HUD ratcheted up the main affordable-housing goal over the next four years, from 50 percent to 56 percent."
more at the
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