Bush and Cheney: Predatory Lenders' Partners in Crime-By Eliot Spitzer

[kpete]

Bush and Cheney: Predatory Lenders' Partners in Crime
Submitted by davidswanson on Fri, 2008-02-15 15:52.

In addition to the use of the OCC discussed below by the Governor of New York, the Bush=Cheney gang also tried to ram a legislative ban on local and state protections through congress sponsored by Bob Ney who is now behind bars.

****

Predatory Lenders' Partner in Crime
How the Bush Administration Stopped the States From Stepping In to Help Consumers
By Eliot Spitzer
Bush and Cheney: Predatory Lenders' Partners in Crime

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks.These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

............

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.

............................

When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits.

So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.

The writer is governor of New York.

more at:
http://www.afterdowningstreet.org/?q=node/31052