Financial Collapse

[delldude]

The group of banks that were set up under the direction of ACORN made up a small portion of subprime lending. These banks were traditional savings and thrift banks. They were federally insured. And the one big bank that worked with them was Citicorp.

So, what happened in a nutshell is that the shadow banking system saw a weakness in the legal structure of the United States and capitalized on it. The repeal of Glass Steagall not only helped the Federally insured banks make bad loans, but it allowed the shadow banking system to become virtually unregulated.

Article

So who were the main players in the scam?

1. the central banks like the Fed and the European Central Bank,

2. the mother bank of those central banks which is the Bank of International Settlements,

3. investment banks like Goldman Sachs, Merrill Lynch, Bear Sterns, Lehman Brothers,

4. commercial big banks, primarily JP Morgan, Citibank, Bank of America and Wells Fargo,

5. the GSE's, Fannie Mae and Freddie Mac, however the private mortgage chart reveals their influence was not central to the private mortgage MBS debacle as they pulled back,

6. Highly leveraged European Banks.

Basel ll

 

[GR Mary P]

Thanks for the info..... I was looking for it!

 

[delldude]

What gets me is how did a community organizing group get the power to set up banks?

And why?

 

[777 fixer]

What gets me is how did a community organizing group get the power to set up banks?

And why?

Waht exactly is your point?