Some conservatives are laying blame for the mortgage crisis in all the wrong places.
Earlier this week, the National Review joined others on the right in in castigating
the Community Reinvestment Act, which forced banks to loan in
communities of color at the same level as other neighborhoods.
Others,
like Chicago radio personality Don Wade, thinks it's the fault of Congress for their
lack of oversight. While interviewing Rep. Jan Schakowsky on WLS' Don Wade & Roma In The Morning today, he asked: "But what about the very regulators who were supposed to
be manning the gates – the people like [Rep.] Barney Frank [D-MA] and [Sen.] Chris Dodd [D-CT] and
all of those people?" Of course, many overlook that the securitization
and selling of the debt got us where we are today, not
the mortgage defaults themselves.
This practice was made possible by Congress' dismantling of the depression-era
Glass-Steagall Act in 1999, which had the effect of handcuffing government regulators whose job
it was to prevent such risky financial maneuvers.
Schakowsky reminded the WLS hosts that not everyone in Washington supported that move. Listen below:
Internal mp3
ROMA: You guys were all overseeing all of this. You were
supposed to be being sure everyone was on the mark as well. So I think
the blame is going to spread both sides of the aisle. I think it’s going to
spread all the way up the tree to the top. And I think the average
citizen who takes out a mortgage in good faith is the one left holding the
bag. I feel like I'm on a snipe-hunt.
SCHAKOWSKY: You know … in 1999, there were 57 of us who
voted not to do the deregulation of the Gramm-Leach-Bliley bill that
actually set the stage for all of this -- the repeal of Glass-Steagall.
And you know, and this is the result of that. The Congress has been working
all year to try and help homeowners and communities, not just people
who got themselves into bad loans, and we did pass some legislation.
But the regulation system is completely out of whack.
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