WTF? Some People Never Learn !
About: a renewed crackdown on redlining - businessweek
With the news last week that Fannie Mae needs another 8.5 Billion from the taxpayers to keep going, now comes the news that community organzers are trying again to force banks to give loans to people who can't pay them back.
Who in their right mind thinks that the housing market will improve by giving loans to people who are risky?
source: ... In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access.
Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators.
Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at the bank say they don't discriminate, Midwest BankCentre's latest annual report says it is in the process of negotiating a settlement with the U.S. Justice Dept. over its lending practices
... the beat goes on. Banks will do anything & give in to blackmail of community organizing just to avoid being called racist. It's happening again. Last time the industry invented curious insurance instruments to avoid the reality that you can't continue to loan money to people who don't pay it back & stay in business (unless you are the government). Private enterprise can't print money. I wonder what kind of instruments they will come up this time.
I wonder about the likely show trials in the Senate on this subject for purposes of the the 2012 Obama re-election compaign.