Some people argue that “deregulation” caused the problems on Wall Street, while others say just the opposite: They blame misguided federal intervention for encouraging banks to lend money to unqualified borrowers.
Look at the 1977 Community Reinvestment Act, critics say: The law encouraged banks to “meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations.”
Banks that wanted to expand had to prove they were meeting the needs of under-served communities – and critics say the banks did that by making loans to unqualified borrowers.
More Here
Look at the 1977 Community Reinvestment Act, critics say: The law encouraged banks to “meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations.”
Banks that wanted to expand had to prove they were meeting the needs of under-served communities – and critics say the banks did that by making loans to unqualified borrowers.
More Here