madasiwannabe

Are Big Banks Too Big to Fail?

Fannie and Freddie were well regulated... The regulators were right there to ensure they had enough liquidity to take on mortgages as the bubble grew. When they ran low, the regulators reduced their capital requirements. When the banks were taking on too much risk with Sub-primes, the regulators had the GSE's drop their bar and take some of that paper off their books. When things went south, they were right there to place the blame. Now the same regulators that are legally responsible to protect the companies assets and return them to profitibility want to use them as toxic waste dumps to clean up the balance sheets of greedy banks.

We need more of these guys around to make sure things go hopelessly wrong next time.