Stop Making Excuses for the CRA
American Banker -- From late-2008 to mid-2009, banks and financial institutions had already written off or written down credit losses on U.S. mortgages by over $1.6 trillion according to the OECD.
Charge-offs on just the CDO-financed portion of the subprime lending debacle were recently estimated by economists at the Federal Reserve Bank of Philadelphia to approach a half trillion dollars. The Community Reinvestment Act of 1977 is still the law of the land and, if it was a root cause of the last financial crisis, as opponents conclude, then it likely will be again. (Full Story)