Without job creation of the mortgage bubble, Mr. Cooperman's financial industry would have been at a loss this year when it needed to shed 35, 000 jobs.
John McCain of Arizona called for the creation of a mortgage and financial institutions trust, which would work with the private sector and regulators to identify institutions that are weak and take remedies to strengthen them before they become insolvent.
The most immediate objective in Paulson's regulatory blueprint--and one he thinks could become a reality before he leaves office next year--is the creation of a Mortgage Origination Commission that would establish minimum standards for mortgage brokers and would grade each state's mortgage regulatory system.
Many would prefer the government to pursue Mr Miles's requests to loosen rules that restrict banks from hedging the risks of fixed mortgages and block the creation of a market for mortgage bonds.
Some had expected Mr Miles to recommend market-distorting tax-incentives for fixed mortgages, or the creation of a government-sponsored mortgage underwriter along the lines of America's Fannie Mae, which would put taxpayers' money at risk.
Credit creation by the federal mortgage agencies has been accused of inflating a credit bubble.
Clinton called for the creation of an entity that would buy up and quarantine mortgage securities that are the bane of the banking industry at the moment.
Warren, who championed the creation of the new Consumer Financial Protection Board after the mortgage-led financial meltdown five years ago, is beginning to use her Senate Banking Committee perch to push regulators for tougher actions against errant banks.
That whole fly-by-night lending boom, slicing and dicing mortgage bonds, derivatives and CDOs, and all the other shadiness of the 2000s mortgage market was a Wall Street creation, and that is what drove all those risky mortgages.
Commercial and mortgage brokers behaved recklessly in 2005--06, but the Fed's creation of excess dollars made the binge far worse.
应用推荐