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	<title>Comments on: Lehman Brothers Declares Bankruptcy</title>
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		<title>By: Feds Investigating Financial Firms for Fraud - Sarbox Survival Guide</title>
		<link>http://www.outsidethebeltway.com/archives/lehman_brothers_declares_bankruptcy/comment-page-1/#comment-514840</link>
		<dc:creator>Feds Investigating Financial Firms for Fraud - Sarbox Survival Guide</dc:creator>
		<pubDate>Thu, 25 Sep 2008 20:40:52 +0000</pubDate>
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		<description>[...] &#8220;meltdown,&#8221; including the near demise of Fannie Mae, Freddie Mac and AIG, and the Lehman Bros. bankruptcy, isn&#8217;t bad enough, the FBI is currently investigating all four firms for fraud. Citing an [...]</description>
		<content:encoded><![CDATA[<p>[...] &#8220;meltdown,&#8221; including the near demise of Fannie Mae, Freddie Mac and AIG, and the Lehman Bros. bankruptcy, isn&#8217;t bad enough, the FBI is currently investigating all four firms for fraud. Citing an [...]</p>
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		<title>By: Bithead</title>
		<link>http://www.outsidethebeltway.com/archives/lehman_brothers_declares_bankruptcy/comment-page-1/#comment-512981</link>
		<dc:creator>Bithead</dc:creator>
		<pubDate>Mon, 15 Sep 2008 18:03:44 +0000</pubDate>
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		<description>Alan; Quite so.</description>
		<content:encoded><![CDATA[<p>Alan; Quite so.</p>
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		<title>By: Alan</title>
		<link>http://www.outsidethebeltway.com/archives/lehman_brothers_declares_bankruptcy/comment-page-1/#comment-512972</link>
		<dc:creator>Alan</dc:creator>
		<pubDate>Mon, 15 Sep 2008 17:45:44 +0000</pubDate>
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		<description>Will anyone call the Democrats to account for their reckless loosening of mortage standards in the 1990&#039;s?

Here is a &lt;a href=&quot;http://www.dollarsandsense.org/archives/1997/1197campen.html&quot; rel=&quot;nofollow&quot;&gt;1997 leftist article&lt;/a&gt; praising the Democrats and the Clinton administration in particular for forcing banks to offer loans to people who were not qualified by traditional standards.

Baffling quotes (emphasis mine):

&lt;blockquote&gt;In fact, the CRA is &lt;b&gt;one of the most remarkable success stories of the 1990s.&lt;/b&gt; Under strong pressure from a second wave of grassroots activism that began ten years ago, many banks have recognized the potential for profitable business in &lt;b&gt;neighborhoods that they had written off without a second thought not so long ago.&lt;/b&gt;

... CRA opponents claimed that it requires &lt;b&gt;risky loans that could undermine a bank&#039;s profitability and threaten its survival.&lt;/b&gt; Actually, the reverse is closer to the truth. The 1980s were marked by massive speculative lending to wealthy real estate developers and get-rich-quick schemers that resulted in the failure of more than two thousand banks and S&amp;Ls. &lt;b&gt;Yet not a single bank failure has been caused by making too many bad loans to disadvantaged borrowers.&lt;/b&gt;

Recently, Federal Reserve Board researchers found &lt;b&gt;&quot;no evidence of lower profitability&quot; at banks that specialize in mortgage lending to lower-income borrowers and neighborhoods&lt;/b&gt; and, in a nationwide survey by the Kansas City Fed, 98% of banks reported that their CRA lending was profitable. A recent investigation by the Comptroller of the Currency found that affordable home loans had &quot;the same level of losses&quot; as standard mortgages.
...
The swell of grassroots support overwhelmed pressure from industry lobbyists and produced &lt;b&gt;unanimous opposition by congressional Democrats to every proposal that would have weakened CRA&lt;/b&gt;. In addition, &lt;b&gt;the Clinton administration never wavered from an early pledge to veto any bill containing such provisions.&lt;/b&gt;&lt;/blockquote&gt;

I want to know who those congressional Democrats were.  I want names.

I&#039;d pay good money to know what Joe Biden said at the time about this.  Surely the Congressional Record can shed some light on this shadowy subject...</description>
		<content:encoded><![CDATA[<p>Will anyone call the Democrats to account for their reckless loosening of mortage standards in the 1990's?</p>
<p>Here is a <a href="http://www.dollarsandsense.org/archives/1997/1197campen.html" rel="nofollow">1997 leftist article</a> praising the Democrats and the Clinton administration in particular for forcing banks to offer loans to people who were not qualified by traditional standards.</p>
<p>Baffling quotes (emphasis mine):</p>
<blockquote><p>In fact, the CRA is <b>one of the most remarkable success stories of the 1990s.</b> Under strong pressure from a second wave of grassroots activism that began ten years ago, many banks have recognized the potential for profitable business in <b>neighborhoods that they had written off without a second thought not so long ago.</b></p>
<p>... CRA opponents claimed that it requires <b>risky loans that could undermine a bank's profitability and threaten its survival.</b> Actually, the reverse is closer to the truth. The 1980s were marked by massive speculative lending to wealthy real estate developers and get-rich-quick schemers that resulted in the failure of more than two thousand banks and S&amp;Ls. <b>Yet not a single bank failure has been caused by making too many bad loans to disadvantaged borrowers.</b></p>
<p>Recently, Federal Reserve Board researchers found <b>"no evidence of lower profitability" at banks that specialize in mortgage lending to lower-income borrowers and neighborhoods</b> and, in a nationwide survey by the Kansas City Fed, 98% of banks reported that their CRA lending was profitable. A recent investigation by the Comptroller of the Currency found that affordable home loans had "the same level of losses" as standard mortgages.<br />
...<br />
The swell of grassroots support overwhelmed pressure from industry lobbyists and produced <b>unanimous opposition by congressional Democrats to every proposal that would have weakened CRA</b>. In addition, <b>the Clinton administration never wavered from an early pledge to veto any bill containing such provisions.</b></p></blockquote>
<p>I want to know who those congressional Democrats were.  I want names.</p>
<p>I'd pay good money to know what Joe Biden said at the time about this.  Surely the Congressional Record can shed some light on this shadowy subject...</p>
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