Poor Us: The Great Depression 2.0

February 17, 2009

Uneasy reading: Bankers’ subprime motives in BusinessWeek

Filed under: Who knew? — Tags: , , , — debacled @ 7:15 am

Finance Sunday by mmystery via deviantart.comThe cover story of the Feb. 12 BusinessWeek is an expose of  how the banking industry is undermining efforts to keep people in their houses and how  politicians are lining their pockets with banks’ campaign contributions with one hand while shaking a sternly hypocritical finger at them with the other.

One memorable quote came after a gathering of top banking executives on Apr. 18, 2007.   Senator Chris Dodd (who, by the way, received more than nearly $6 million from the financial industry) was trying to get them to agree to adjust loan terms so borrowers would continue to make some payments, rather than stopping altogether.  The responses were all subprime, but this was one was the worst:

“Some from the industry denied a foreclosure problem existed, including Sandor E. Samuels, at the time chief legal officer of subprime giant Countrywide Financial. They vowed to continue selling loans with enticing introductory rates as well as those requiring minimal evidence of borrowers’ income. “We are going to keep making these loans until the last second they are legal,” Samuels later told a fellow participant. Read: How Banks Are Worsening the Foreclosure Crisis in BusinessWeek


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