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> Congress pushed the banks into doing them in the early 2000s to extend credit to marginalized populations! How so? Subprime mortgages were largely not sold t
by cowsandmilk 8y ago
> Congress pushed the banks into doing them in the early 2000s to extend credit to marginalized populations!
How so? Subprime mortgages were largely not sold to government entities, but to private investors as CDOs. And government banking regulations about investing in low income communities never required making subprime loans.
- gammateam 8y agoThey pushed as in asked them to. It is often times prudent to strengthen relationships in the country you do business. This turned out to be fruitful as a different congress hedged their failed bets with money that taxpayers were going to give Congress.
- scarface74 8y agoWith all the money banks pay for lobbying, do you really think they would go against their own self interest just to “strengthen relationships”?