That happened to be one day before former Citi Chief Executive Charles Prince resigned amid the subprime lending crisis that would quickly engulf Citi, Merrill Lynch, Lehman Brothers and the rest of Wall Street.
The spike in delinquencies are coming off historically good credit quality in 2004, they note, and the levels of delinquencies aren't terribly higher than they were in the last subprime lending crisis of 1999 to 2000.
Subprime Lending and Our Financial Crisis: The Result of Centralized Planning Planning for competition works wonders.
Iceland is getting closer to becoming the first nation to go bankrupt as a result of the subprime mortgage crisis and resulting squeeze on lending.
To be sure, economists say the explosion in subprime lending played a role in the financial crisis and that some attrition in the industry is healthy.
Tim Geithner, my incoming Treasury Secretary, reported that the financial system, shaken by the subprime crisis, had halted almost all lending, which in turn threatened to pull the broader economy in a downward spiral.
We are still feeling the effects of the subprime mortgage crisis, as banks tighten up on lending (they don't even want to lend to each other, which tells you something), which in turn has sharply slowed the U.S. economy.
The newly finalized rule the first in a series of major rules related to the industry that stem from the 2010 Dodd-Frank Act is meant to help prevent a repeat of the lax lending that led to the economically crippling subprime mortgage crisis.
FORBES: Could New Tighter Mortgage Rules Actually Ease Lending?
If the financial crisis was caused by subprime mortgages and predatory lending, the government's own policies made it happen.
Senate Banking Committee Chairman Christopher Dodd called the predatory lending practices "unconscionable and deceptive" at a hearing last week to investigate the subprime mortgage crisis.
Although an expansive monetary policy and the massive inflow of cheap money helped inflate the housing bubble, the financial crisis as we know it would not have occurred without the toxic effect of subprime lending.
The root cause of the crisis, Mr Pickel argues, is bad mortgage lending, not derivatives: swaps on subprime mortgages grew unstable because the loans themselves were dodgy.
As Fannie and Freddie were taking on billions in subprime debt, Barney Frank continued to assure us that that there was no financial crisis and press for more affordable lending.
One of the two primary causes of the financial crisis was overregulation, primarily forcing banks to trash traditional lending standards, and make ultimately trillions in subprime and other non-prime loans, for the social goal of promoting home ownership among the disadvantaged.
FORBES: Media Parrot Obama Financial Crisis Campaign Propaganda
应用推荐