Fed Closing the Barn Door
Monday, July 14, 2008 at 12:40The Federal Reserve laid out a slew of new regulations governing home mortgages.
Of course, they don't kick in until October 2009, with one being delayed until 2010.
None of these do anything to ease the current crisis, and you can bet that lenders will push everything they can under the wire before the new regulations go into effect next year. Where was all this foresight a year ago (or even two), when all the danger signs were in place and under public debate?
I also note that there has been no SEC action on the question of bundling these mortgages into speculative securities, even though the fluidity in that market has been a key factor in the mortgage crisis and its associated institutional failures. When will the SEC do its part?
It was clear, long ago, that this effectively-unregulated industry was not in any shape to police itself, yet these folks refused to step up. Sigh.
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Reader Comments (1)
Three posts in a row? Wes, you're on fire!