Countrywide Cor…

Countrywide Corruption on Capitol Hill

 
Four years have passed since the financial crisis that for a time threatened to carry America’s economy into the abyss. The epicenter of the crash was the housing market. No mortgage lender had a more malign influence than Countrywide Financial Corp., which, a House committee found, bought itself political clout by giving cheap loans to important political and industry officials.
So-called influence peddling on Capitol Hill is neither new nor surprising. Although housing is essential for all Americans, home ownership is not. The industry, from builders to realtors to financers, has sought government support to inflate housing demand. And, not incidentally, their profits.
There were a lot of influential players with a role in the subprime lending debacle. Government simultaneously strong-armed and subsidized financial institutions into providing mortgages to people with ever poorer credit ratings. One of the largest was Countrywide Financial Corp., which developed a special relationship with Fannie Mae. The latter, along with its companion government-sponsored enterprise Freddie Mac, did so much to trigger both the financial crisis and succeeding bail-outs.

Read more: http://spectator.org/archives/2012/07/23/countrywide-corruption-on-capi

Advertisements
Previous Post
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: