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OR FROM BIG INVESTMENT "BANKS"*, DO YOU THINK?
The answer to this question comes from the facts we know and not from the opinions we may cherish:
Allowing too-big-to-fail banks to dominate the nation’s mortgage market would crowd out smaller lenders and expand the federal safety net, putting taxpayers at greater risk of funding bailouts in a downturn. Relying on mortgage insurers to provide that capital also seems dubious given how badly these companies performed in the 2008 crisis.
Gretchen Morgenson, "Insiders Aid Big Banks in Effort to Displace Fannie and Freddie" (Monday, December 7, 2015, posted online with the headline, "A Revolving Door Helps Big Banks' Quiet Campaign to Muscle Out Fannie and Freddie"). [Emphasis added.]
Well, we know the answer to that one.
*"Big banks" are investment banks. They do not take deposits. They make investments.
Please Read The Disclaimer. ©2015 by Dennis J. Wall, Co-Author of "Catastrophe Claims / Insurance Coverage for Natural and Man-Made Disasters" (Thomson Reuters November, 2015). All Rights Reserved.
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