Gov. Elliot Spitzer explains:
Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York’s, enacted laws aimed at curbing such practices.
That sounds good. I witnessed such practices and saw prices skyrocket before my eyes . That was a huge reason that the Bush economy held up as long as it did—I think Bush called it the “ownership society.” I guess we can call it the foreclosure society…. The right wingers usually try to say that we blame Bush for everything. Well, let’s see how he did, shall we…
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
The administration accomplished this feat through an obscure federal agency called the Office of the Comptroller of the Currency (OCC). The OCC has been in existence since the Civil War. Its mission is to ensure the fiscal soundness of national banks. For 140 years, the OCC examined the books of national banks to make sure they were balanced, an important but uncontroversial function. But a few years ago, for the first time in its history, the OCC was used as a tool against consumers. In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative.
Nuff said….
No Trackbacks To “Bush Administration invoked an obscure Banking clause 1863 to enable predatory lending practices“
Broke the army, looted the Treasury, ruined the economy, shredded the Constitution. There’s your legacy * (Kurt Vonngegut word - See Breakfast of Champions.)
Why is it that I always have the feeling with President Bush, that for the past 7 years he has had his minions pouring over ancient laws to find just the right one to continue to f the American public in favor of BIG, BIGGER, BIGGEST corporations? Returning us right back to the laissez-faire capitalism that led to the Great Depression? Why do I still have knots in my stomach every blessed time this man opens his mouth? Why?
If we don’t see War Trials after this fiasco of an administration all Americans (except the 28% Moron Factor) will be very disappointed.
Next thing you know, His Fraudulency will invoke some class of a “National Economic Emergency” to mandate the outright denationalisation of certain “non-essential” and “unlikely to deliver taxpayer value” agencies, institutions and schemes of the United States Government.
Said denationalisation, on closer inspection, tending to be closer to “spoils” and patronage, favouring only a few close droogs of the “inside of the inside” of the Great Within (as Rewards for Good and Loyal Service), rather than encouraging serious enterpeneural innovation–and a bit too hasty, @ that.
Besides: The proceeds from such denationalisations are probably going to serve corrupt and evil purposes, rather than accrue to the Treasury, as the law usually requires.
Does this fall into the “crooks” or “liars” category? When is somebody going to go to jail for this crap?
somebody is cooking with old fish again. It’s the Bush boy.
for fuck’s sake - seven years of this tripe and when does the phrase “high crimes and misdemeanors” become relevant?
I am on your side but unfortunately it is not “nuff said”…you need to follow up with more detail to make a convincing argument the will stand scrutiny. Facts.
bush/CHENEY and all his bastard fiends have shoved a staff up the butts of the consumers
for too long now. it’s time we all shoved a rod up their butts and IMPEACH.
how long can this administration be allowed to destroy the entire
Constitution and civil liberties of American citizens?
FUCK BUSH/CHENEY AND THE ENTIRE GOP.
These people will never see justice, so we have to take their lives.
Bangkok Bob @ 3:
If we had prosecuted all these assholes after the Nixon administration, we wouldn’t be in this mess. We need to stem this precedent or it will come back on us.
Who could have foreseen, Bush siding with multinational corporations against US citizens? Alert Condi! This has to be absolutely unprecedented.
And to underscore, I’ve heard people calling this a “housing bubble” since 2000.
And the war on poverty goes on and on and on —–
This action by the W/H occurred, according to the above article, in 2003 and my
question is…”Why is Elliot Spitzer just nowmaking the media
and the general public aware of such?” The predatory actions by numerous
financial institutions occured in the Spring/Summer/Fall of last year and NOW
we are learning that this admin., as usual, took steps to assist them and not
the consumer..
fwffavvg @ 10:
Lets not advocate illegal violence. The War Crimes Act allows for the death penalty.
Don’t think anyone who tried, actually tried, to be an awful president could have achieved more in that direction than shrub. He really does have the Midas touch.
Hey this law is from 1863, the year of Gettysburg. This proves Bush = Lincoln!
VietVet8666 @ 15:
Make that the MINUS TOUCH!
Yup, leave it to ol’ Bushie to go back and restore some of the things that were fixed after they caused the Great Depression. I hope there is a special place in hell for this crew.
What i do find interesting though, is the fact that the housing crisis has only received the attention from Bush et al, after the large corporate lending apparatuses have begun taking it on the financial chin. Enter project lifeline - essentially helping banks get the money that they are owed with ZERO guarantees to the debtor. Wtf ever happened to the republican mantra of letting the markets adjust themselves?
Man, they’re in it deep. Right now, the stupidest move for Bush/Cheney is to leave their office/titles/power behind. And that’s what scares me the most.
This is gonna be the worst October surprise yet, methinks. Endgame.
“prices skyrocket before my eyes”
From what I understand in California people have bought houses which conceivably have outstanding loans which are twice the amount of the actual value these properties as it stands right now.
I’ve heard of people just abandoning their homes in the central part of our state probably because of this very fact and the type of adjustable rate loans they were sold.
During the early 90’s we had a recessions here and from what I understand people had the very same real estate problem now. Except the loan verses the actual value of the homes was not as dramatic as it is now.
If you took into consideration also that in the early 90’s outsourcing of jobs (NAFTA) was not as much of an impact as it is now, this really does not bode well for our state.
I’m really worried about this whole situation because it took about three years for California to climb out of that early 90’s recession.
How are we going get out of this mess?
The clown never stops.
bush and his crime family … I wonder if these “people” are even human. They go for corruption, evil, and lies. The hypocrisy we know about.
I know they eventually get their karma, but sometimes I wonder why it takes so long.
ticktock @ 21:
No one knows. Not even the Feds and Wall Street knows. We are in uncharted territory.
LOL! I wonder if the Bush lovers who’ve lost their houses still wanna pucker up to George. This is truly criminal. People want to impeach him for crimes in foreign policy? If this were to get widespread media coverage, I’ll bet Conyers would be able to get Bush the boot inside a month. No shit. This is just ridiculous. In collusion with the Fed and banking industry, this government simultaneously dumped too much cheap money and credit into the market, causing a spending frenzy with a crapload of debt racked up. And then had bankruptsy laws changed to favor the creditor when things go bad. And then used an obscure tactic to protect the banks for predatory lending practices as well.
Bush = cut and sintered, left to rust, iron pipe. Screw the people coming and screw the people going.
And he still has 30% approval rating? These people can actually breathe? Dammit, people are stupid.
The more you read about this regime, the more it’s obvious that they aren’t a bunch of screw ups. Everything they’ve done, has been done on purpose. In a word—TREASON.
…leaving foreign investors with a crap load of empty sacks. I guess we just give Hawaii to the Chinese and call it even.
And the hits just keep on coming ( and those at work think I’m so pessimist about anything this regime does??) I was a student at a local college and a few of the students thought that the country should go back to the late 1800’s i.e no federal agencies and by extention no protections.
On another note the mining companies continue to use a law passed while Grant was in office to NOT pay for royalties and property they bought pennies on the dollar something to do with getting people to settle out west.
This regime ( or is it a way of thought ) that wants to SHOW that government doesn’t work and spin it so as to get the public to go along with to drown it in a bathtub
off topic maybe all those congress critters that voted for torture should have to go through it after all maybe they’ll get kidnapped while on their ( your paid for) fact finding missions ( more like vacations) and they’ll give away vital government information and also to experience what they’re condooning
Bush Economy = Dot House !
ebone @ 7:
AMEN!
chrismurphy @ 24:
Didn’t Hillary vote yea on that bankruptcy law Maybe the congress should have to update outdated laws stop making new ones you’ll never see the MSM cover this they are in bed with those that profit from it and those 30% must not have enquiring minds to question all the evil that is being done by those they voted for
I’d like to see the boss of this little department in front of a committee. Even if he is a typical bush liar, I like to see the vermin having to crawl out into the sunlight for a few hours.
This reinforces the fact that EVERY aspect of the government has been politicized to either destroy beneficial programs or enrich the robber barons of the GOP.
this was all done so that in the sotu address of 2 years ago the chimp could exclaim
“home ownership is at the highest point in our history”
it was all smoke and mirrors for the greatest ponzi scheme in history
Old Billy @ 14:
E.X.C.E.L.L.E.N.T… let the fun begin!
Point in case.
Today, a relative large number of ordinary citizens own overpriced houses bought using extraordinarily risky loans, and a large number of institutions such as pension funds, banks, hedge funds, and money markets own fraudulent securities based on these house loans, worth a fraction of their face value.
Not pretty. And thats not even all of it.
Robynhood @ 8:
For example, what is the text of this obscure & most certainly outdated law? What are the provisions by which it is enacted. Are there any known exemptions? etc etc etc.
I’m sick of much of the spoilage we’ve been seeing lately, but I’m not going to accept that any comment by the left which is unsupported is instantly true either.
ebone @ 19:
Are you kidding when those that profit have it rough they call for help ( bailout) markets that adjust themselves is a fairy story just like free markets
the smarts guys in the room must have taken their courses from a correspondence courses.
Watch your credit card annual percentage rates skyrocket to cover their greed
The reality is the only effective form of protest now is to not consume ANYTHING.
Just bring it to a standstill-stop and see who’s left standing with their pants down around their knees.
L.A. Confidential @ 34:
You are connecting the dots…
This real estate fiasco looks like the ripple that starts the tsunami…
I wish I knew how to surf…
unsurebtwilling @ 36:
I am inclined to just go with what usually fits:
Republicans are selfish hypocrites with two sets of ever-fluid (in their favor, of course) rules. Don’t trust them any further than you can toss a Limbaugh.
L.A. Confidential @ 37:
Man, I HAVE to keep supporting my local comic book shop! But I get it.
ticktock @ 38:
And not only that they tweaked Bankruptcy laws so ordinary people can’t get out of this Sh*t.
L.A. Confidential @ 37:
You are absolutely correct on this. If everyone simply bought the necessities, in cash, then those greedy corporatists and companies would truly be brought to their knees… they would have been kicked where it hurts indeed.
unsurebtwilling @ 27:
Are you kidding? I am so skeptical of these creeps that if GeeDub Bush himself told me that my hair was on fire and I would burn to death with one hand protecting my wallet and squinting with abject suspicion at his motivation for even addressing me.
Based on the stats that show people become conservative when the become homeowners, the GOP hatched a plan to create a permanent majority by getting as many Americans to be homeowners as possible. They changed all the rules needed that lead exactly to the current subprime mess.
To anyone out there losing your house due to this, just know your situation is direct result of a GOP power grab.
I’ve seriously considered refusing to pay income taxes as an act of personal resistance for years But I’m scared shitless of going it alone.
Burns:
Homer:
Burns:
Robynhood @ 8:
Doesn’t the article tell us all we need to know?
They stopped states from trying to prevent what is going on today…
I never liked the BS, “Buyer Beware”….I say “SELLER BEWARE”…you sell me lies,fake numbers, hidden costs etc,….’SELLER BEWARE’.