Global Financial Crisis: Warnings of danger from 2001 and a Fed all bark but no bite - with monumental consequences
Nov 25th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Global Financial Crisis: Two newspaper stories from London and Washington on Dec 13, 2001, raised warnings about the risk of US predatory lending and the selling of credit risk through instruments such as credit derivatives and collateralised debt obligations. One was a report that the Fed had "approved the strongest federal response ever to predatory lending," but alas, it was all bark and no bite, with monumental consequences.