Capital New York

njbob commented on Bloomberg: 'Plain and simple,' Congress caused the mortgage crisis, not the banks

In 2007 before the financial meltdown, my Wachovia branch manager insisted that I get a home equity loan, which I didn't want or need. She promised that I would pay no fees. She then had a drive-by appraisal done which showed my house double its worth on paper. Someone planning to lend her employer's money would not do this. So it dawned on me that either she was after a hefty commission, or that Wachovia had no intention of keeping the loan. Probably it was going to sell it to Merrill Lynch and likes as to be packaged as a CDO. Banks are the primary offenders here. Not the borrowers. Congress only gave ammo to the banks to perpetrate this crime which they got away with. Banks probably lobbied for it too.

Posted on November 1st, 2011 8:24pm