Citibank Gets $306 Billion
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Citibank Gets $306 Billion
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
| Mon, 11-24-2008 - 1:21am |
Detroit needs to hurry up and come up with a plan.
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<<<Assistant professor of law Alan M. White notes that some abuses blamed on the CRA actually occurred because the Housing and Urban Development and Office of Federal Housing Enterprise Oversight under the Bush administration allowed Fannie Mae and Freddie Mac to fulfill their affordable housing goals by buying subprime mortgage-backed securities. These affordable housing goals were motivated by similar aims, but not part of the CRA.>>>>>>>>>
So who is the 'they' of the CRA that you keep referring to? Saying that CRA is responsible for the crisis does not make it so.
Nope - it wasn't 'obvious' to me either. It was not the intention of the legislation to provide 'risky' loans.
SEC. 802. (a) The Congress finds that--
(1) regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business;
(2) the convenience and needs of communities include the need for credit services as well as deposit services; and
(3) regulated financial institutions have continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered.
(b) It is the purpose of this title to require each appropriate Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are
chartered consistent with the safe and sound operation of such institutions.
Please note that in Sec 802 'consistent with the safe and sound operations of such institutions' would be inconsistent with the idea that the loans were to be 'risky' - in point of fact the loans were to be 'safe and sound.'
SEC. 804. (a) IN GENERAL.--In connection with its examination of a financial institution, the appropriate Federal financial supervisory agency shall--
(1) assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution; and
(2) take such record into account in its evaluation of an application for a deposit facility by such institution.
Once again we see the 'safe and sound operation of such institutions' even in reference to low and moderate income neighborhoods. No mention of making 'risky' loans here either. Wonder why?
So, Sopall, you can see that I have read this and have not found where banks were encouraged to make 'risky' loans either. Maybe there is an alternate CRA? Sort of like a business that keeps two sets of books? I rather doubt it, but perhaps it does exist in an alternate universe.
"Anyone who would call an 8,000 point rise in the Dow a "failure" is also an ideologue who would stamp their feet and hold their breath until they turn blue in insisting that the CRA is the problem today because, gosh darn it I said so. Despite all of the evidence to the contrary."
LOL changing the topic in no way discredits what I said.
"I have no comment on the scurrilous content of your post."
"Nope - it wasn't 'obvious' to me either. "
Not suprising.
"And yet it said, repeatedly - safe and sound operations of such institutions. You can cherry pick all you want - but to misconstrue the intent of the bill is simply your opinion and nothing more."
LOL yea right.
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