PrintMay 28, 2010
Has the SEC Charged the Right People with Securities Fraud?
As Fannie Mae and Freddie Mac ask for an additional $8.4 billion of U.S. taxpayer dollars to cover their rising mortgage losses, their cumulative total debt to the American public comes to $145 billion. The citizenry hardly notices, and the government quietly writes a check to the two failing institutions. This strategy is in keeping with the American political system's management of the populace's collective attention, with the understanding that if an administration can ride out a scandal for six months, then all will be forgotten. The uncurious press moves on to other events, and the limited public memory replaces old facts with new. This myopic historical memory is exactly what the political class is using to hide its culpability in the national mortgage crisis. Therefore, a quick history lesson is in order.The 1970s brought the Community Reinvestment Act, followed by the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act. These laws were then used by...(Read Full Article)
