Lenders, borrowers or regulators (the government)?
Ethical breaches
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The damning report criticised the extent of the financial deregulation overseen by the former chairman of the Federal Reserve, Alan Greenspan.
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It concluded that the crisis was caused by a number of factors:
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- Failures in financial regulation, including the Federal Reserve’s failure “to stem the tide of toxic mortgages”
- A breakdown in corporate governance that led to “reckless” actions and excessive risk taking by financial institutions
- Households taking on too much debt
- A lack of understanding of the financial system on behalf of policymakers
- Fundamental breaches in accountability and ethics “at all levels”.
It added that “collapsing mortgage-lending standards” and the packaging-up of mortgage-related debt into investment vehicles “lit and spread the flame of contagion”.
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These complex derivatives, which were traded in huge volumes by major investment banks, then “contributed significantly to the crisis” when the mortgages they were based on defaulted.
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The report also highlighted the failures of the credit ratings agencies in recognising the risks involved in these and other products.
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“The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done.â€
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 Phil Agelides, U.S. Financial Crisis Inquiry Commission
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http://www.bbc.co.uk/news/business-12297002
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Plus, A BBC Video Report:
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“Who is to Blame for the Crisis?”
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http://www.bbc.co.uk/news/science-environment-12295710Â
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Who is regulating the Regulators?
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Feb 232010
An $11,800 bounce in prices
No category of housing in Manteca has dropped farther in value than the Cherry Lane condos. The conversion of the apartment complex at Union Road and Cherry Lane five years ago created what was touted as Manteca’s most affordable housing. At the height of the housing bubble in early 2006, the 941- and 944-square-foot units peaked at $220,000. A 944-square-foot unit closed escrow on Jan. 21 for …
Read more on The Manteca Bulletin
Mortgage Fraud Causes Losses For Institutions -Regulatory Group
Mortgage Fraud Causes Losses For Institutions -Regulatory Group
Read more on Fox News
Your mail: La. banks solid
The public is justifiably angry and puzzled about the actions of the federal government since the fall of 2008 when the financial system appeared to be in crisis.
Read more on The Alexandria Town Talk
Regulators shut small Florida bank
WASHINGTON — Regulators on Friday shut down a small bank in Florida, boosting to 17 the number of U.S. bank failures this year following 140 closures last year in the worst financial climate in decades.
Read more on The Shreveport Times
Feb 062010
I hope that it is not too late for the aid for small businesses. Almost daily I see businesses slashing prices, closing up and not all are small businesses. The reality is now well known that the banks are legalized loan sharks. The politicians and federal “regulators” are more corrupt and paid off than ever before. The result is people are holding on to their cash, not spending and not investing. Consumerism and debt no longer will drive the economy.  What will drive the economy now? Bailing out the banks with tax payers’ dollars and giving an additional bail out to the banks allowing them to change loan terms to charge whatever interest they choose to steal more money from the consumer decreases their ability and confidence to consume and does not seem to be the way to turn the economy around. A Country that is run by greed and corruption will fall as history has revealed.
Jan 292010
Regulators shut banks in Fla., Ga., Minn.
Regulators on Friday shut down two banks in Georgia, and one each in Florida and Minnesota, boosting to 13 the number of bank failures so far in 2010 on top of the 140 shuttered last year in the punishing economic climate.
Read more on AP via Yahoo! News
Jan 242010
Thinking about trying to become the family regularly. I hope to do during the check for real estate agents. I have been to many web sites of insurance (Allstate Insurance Company, State Farm, etc.), I can not get a lot of information about home insurance. A large number of rules for cars, but do not want to deal with the vehicle. Regulators your insurance company or using an outside company?
Jan 242010
Regulators take over troubled Charter Bank
Get FREE Daily Headlines by email! The six branches of Charter Bank are expected to re-open Monday after the Santa Fe bank was taken over this weekend by the Federal Deposit Insurance Corp.
Read more on Santa Fe New Mexican
Jan 242010
Premier American Bank in Miami fails
Regulators shuttered Premier American Bank in Miami Friday night, making it the fifth bank to fail in 2010.
Read more on CNNMoney.com via Yahoo! Finance
FDIC Chief Got Bank of America Loans While Working on Its Rescue
by Keith Epstein and David Heath Sheila Bair, one of the chief regulators overseeing Bank of America’s federal rescue, took out two mortgages worth more than $1 million from the banking giant last summer during ongoing negotiations about the bank’s bailout and its repayment. In the weeks between the closings on her two mortgage loans, Bair met with Bank of America’s chief negotiator in the …
Read more on CommonDreams.org