Banker Described As Predatory May Join Federal Reserve, a Test for Senators

[struggle4progress]

Byline: Matthew Lee of Inner City Press

NEW YORK, May 20 -- The newest nominee to the U.S. Federal Reserve Board, which is under fire for inaction leading to the subprime lending and foreclosure crisis, comes from a notorious subprime lender, Capital One.

Larry Allan Klane, whose nomination was announced on May 15, before that worked at Deutsche Bank, whose involvement with lenders sued for predatory lending such as New York's Delta Funding has like Capital One's record been an issue considered but not acted on by the Fed.

With Fed chairman Ben Bernanke alternately promising greater scrutiny of and calling for restraint in restricting the subprime lending field, there are serious questions raised by the nomination of a longtime subprime lender to the Board. Whether these questions will arise in or even derail Klane's consideration by the U.S. Senate remains to be seen. ~snip~

Mr. Klane involvement with Capital One has extended beyond high-rate credit cards. He was a point-name when Capital One in 2005 bought the subprime mortgage lender eSmartloan. See, e.g., Card Line of Dec. 17, 2004. ~snip~

http://www.innercitypress.com/fedwatch052007.html

[PDJane]

1. Time to nationalize the bank.........

Well, long past time, but ..........

[Wiley50]

2. Aren't they all?

The Fed has always been predatory

it's called capitalism

[PDJane]

3. That's what happens.....

When private enterprise runs the national banking apparatus.

An error.

[Mandate My Ass]

4. class warfare, reverse robin hood-ism

take your pick. It's the only thing the Bushes stand for and which they're capable of accomplishing.