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I am thoroughtly convinced these people are trying to destroy the economy of the United States. There is no other answer. This is sickening.
"Regulation: A leftist movement to pass local "responsible banking ordinances" is sweeping the nation. Now banks will be harassed into making risky loans by city, not just federal, diversity cops.
The two largest cities this week approved laws requiring banks doing business with them to meet race-based quotas for mortgage and small-business lending. They'll also have to stop foreclosures on previous bad loans and vow to open new branches in urban neighborhoods.
New York and Los Angeles officials who voted for the laws say they're trying to "build on the Community Reinvestment Act." This is the same federal banking regulation that fed the subprime bubble by requiring banks to make riskier mortgages in "underserved communities."
Los Angeles Mayor Antonio Villaraigosa, a strong President Obama ally who agrees the CRA's power and scope should be expanded, is expected to sign the ordinance. New York Mayor Michael Bloomberg is likely to veto it, though the city council will be able to override it.
The moves effectively turn local authorities into bank regulators along with the federal government, adding another layer of CRA enforcement and creating additional pressure on banks to make risky loans.
They also create an unnecessary paperwork burden for banks in these large markets. Bank officials now have to regularly report lending data to city contracting agencies, in addition to federal bank regulators (who already post CRA ratings for any city official to see).
This added compliance cost ultimately will be passed on to bank customers. And taxpayers will have to pick up the cost of the new city bureaucracies that will be set up to police bank lending practices.
Still, New York and Los Angeles are joined by several other major cities in passing such social banking laws, including Pittsburgh, Kansas City and Cleveland. In addition, San Diego, Oakland, Seattle, Boston, Austin, Philadelphia and Portland have drafted similar laws."
I am thoroughtly convinced these people are trying to destroy the economy of the United States. There is no other answer. This is sickening.
"Regulation: A leftist movement to pass local "responsible banking ordinances" is sweeping the nation. Now banks will be harassed into making risky loans by city, not just federal, diversity cops.
The two largest cities this week approved laws requiring banks doing business with them to meet race-based quotas for mortgage and small-business lending. They'll also have to stop foreclosures on previous bad loans and vow to open new branches in urban neighborhoods.
New York and Los Angeles officials who voted for the laws say they're trying to "build on the Community Reinvestment Act." This is the same federal banking regulation that fed the subprime bubble by requiring banks to make riskier mortgages in "underserved communities."
Los Angeles Mayor Antonio Villaraigosa, a strong President Obama ally who agrees the CRA's power and scope should be expanded, is expected to sign the ordinance. New York Mayor Michael Bloomberg is likely to veto it, though the city council will be able to override it.
The moves effectively turn local authorities into bank regulators along with the federal government, adding another layer of CRA enforcement and creating additional pressure on banks to make risky loans.
They also create an unnecessary paperwork burden for banks in these large markets. Bank officials now have to regularly report lending data to city contracting agencies, in addition to federal bank regulators (who already post CRA ratings for any city official to see).
This added compliance cost ultimately will be passed on to bank customers. And taxpayers will have to pick up the cost of the new city bureaucracies that will be set up to police bank lending practices.
Still, New York and Los Angeles are joined by several other major cities in passing such social banking laws, including Pittsburgh, Kansas City and Cleveland. In addition, San Diego, Oakland, Seattle, Boston, Austin, Philadelphia and Portland have drafted similar laws."
It is pretty easy to see what is being attempted here. I have read the orders along this line from the federal government on the bulletin board of the little bank I janitor in and wondered what it would be like here if we get enough illegals moved in to try to take advantage of that law. I still do wonder about that and expect it to happen any day. We don't have many of them in our town yet but they are on their way, I am sure.
What has been forgotten is what caused the housing bubble and subsequent meltdown in the first place - which was the aggressive enforcement of the Community Reinvestment Act during the Bill Clinton presidency. Bill Clinton helped cause the recession - and yet he is talking last night during his DNC speech about how to recover from it? Are you kidding?
The CRA forced banks to make risky loans that they normally would not have made. The banks were reassured that Fannie Mae and Freddie Mac would back the loans and in the years and months leading up to the eventual housing market collapse - President Bush warned Congress of the coming danger - yet was rebuffed by the Democratic controlled congress and specifically by Barney Frank and Chris Dodd who together brought us the Frank-Dodd recession.
Bill Clinton started this mess and now he thinks we should listen to him on how to clean it up?
What has been forgotten is what caused the housing bubble and subsequent meltdown in the first place - which was the aggressive enforcement of the Community Reinvestment Act during the Bill Clinton presidency. Bill Clinton helped cause the recession - and yet he is talking last night during his DNC speech about how to recover from it? Are you kidding?
The CRA forced banks to make risky loans that they normally would not have made. The banks were reassured that Fannie Mae and Freddie Mac would back the loans and in the years and months leading up to the eventual housing market collapse - President Bush warned Congress of the coming danger - yet was rebuffed by the Democratic controlled congress and specifically by Barney Frank and Chris Dodd who together brought us the Frank-Dodd recession.
Bill Clinton started this mess and now he thinks we should listen to him on how to clean it up?
Sorry BJ - I'm not biting.
No one "forced" banks to do anything, I would love to hear the details on a 30 year old regulation that suddenly caused banks to make bad loans. Sorry but giving a $400K loan to someone with a $20K salary was the personal greed on the lenders part, the indictments and lawsuits are proof positive.
Tell me where in the CRA does it state that there is no means testing required, no financial background checks, been hearing this urban legend for 4 years, where is the backup?
No one "forced" banks to do anything, I would love to hear the details on a 30 year old regulation that suddenly caused banks to make bad loans. Sorry but giving a $400K loan to someone with a $20K salary was the personal greed on the lenders part, the indictments and lawsuits are proof positive.
Tell me where in the CRA does it state that there is no means testing required, no financial background checks, been hearing this urban legend for 4 years, where is the backup?
Harrier is 100% correct---the CRA wasn't REALLY enforced until Bubba Clinton put it on steroids in 1994, as Thomas Sowell, Walter E. Williams & numerous other media outlets reported back then.
Obama was right in the middle of it as well during his 'community organizer' days; as the Chicago Sun Times reported in 1995, he filed lawsuits against Citbank on behalf of local radical outfits such as ACORN, charging them with practicing something called redlining, which isn't a crime anywhere except in the minds of radicals such as Obama, Sharpton, Wright, Rangel, Kersosene Maxine Waters (thank you Larry Elder!!!) and other certified lefties.
He states 19 still have that home AND a good credit rating
Lets see, the small details he doesn't cover....
The many who sold their house before 2008
Home owners died between 1995 and 2010
And all those who are still in their home but have a bad credit rating.
CRA's were not the problem. They were only a small percentage of all home loans and their rate of failure was far less the those made by the big mortgage companies like Countrywide. Greed for market share and market growth by the financial institutes was the problem. (And Fannie & Freddy jumped into the buying of packaged mortgages from other companies & banks, expecting to make great profit,which for a while they did until the house of cards came crashing down on the industry)
Location: On the "Left Coast", somewhere in "the Land of Fruits & Nuts"
8,852 posts, read 10,455,696 times
Reputation: 6670
CRA's notwithstanding, so Obama first bailed out Wall Street and the Banks in order to "destroy the economy of the United States"?!
Did you ever stop to think just how stupid that sounds?
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