originally posted 2008-10-10 03:16:07 - bumped - cho
There were ample indications the foundations that subprime built were in danger long before they became anchors to be leveraged. ProPublica mentions three:
Long before the financial crisis claimed headlines, U.S. regulators and law enforcement officials had begun sounding alarms about dangerous lending practices and Wall Street’s headfirst jump into the subprime market. Some were brushed off by their superiors. Others led agencies like the Federal Deposit Insurance Corporation and the Treasury’s Office of Thrift Supervision, which at least one lawmaker has accused of acting sluggishly to avert the crisis.