Comments on: What? Me whine? I’m chuckling: Phil Gramm’s Swiss bank has lost $38 billion in the credit crunch

By: Henry

Henry — Sat, 12 Jul 2008 14:17:40 +0000

This whole financial mess is the result of lax regulatory oversight. The Office of the Comptroller of the Currency (OCC) regulates federally chartered banks (this includes all of the large institutions). The OCC annually reviews a bank’s portfolio of loans and the lending policy in place to underwrite loan production. The Feds knew that most of these banks (and Fannie Mae and Freddie Mac who where buying these loans in the secondary market) were making mortgages to people who could not afford the payments once the ‘teaser’ rate came off in 2-3 years. There is no way to spin this. It is a huge failure of this administration to have allowed banks to make loans, and collect the fees, knowing full well that most of these people would never be able to afford the payments once the Adjustable Rate came off and people had to get a fixed rate mortgage. It’s fraud, and heads should roll both at the OCC and the institutions.

By: Milton Waddams

Milton Waddams — Fri, 11 Jul 2008 20:24:21 +0000

Too bad McCain’s the only one of the Keating 5 left. Maybe he can do something to help…

By: Mike Carroll

Mike Carroll — Fri, 11 Jul 2008 16:26:55 +0000

Pat-I just love the principled stance of Obama’s legions and this stars our own Dickie Durbin. More change we can believe in.
http://online.wsj.com/article/SB121573640282644435.html?mod=todays_columnists

By: Menlo Bob

Menlo Bob — Fri, 11 Jul 2008 15:34:06 +0000

Sort of looks like the stock chart of Gatehouse Media.

By: butch north

butch north — Fri, 11 Jul 2008 13:23:05 +0000

The thing about it is that, we the tax payers end up with the bill. Do you remember the saving and loan mess of 20 years ago? Executives still got there bonuses while we paid for it. Because the federal reserve is bailing them out, doesn\’t mean that the tax payer is home free. That is the only reason that the tax payer is good for anything. It is very rare for the executives to lose money. Is there any hope that this stupidity will stop? HA! Not in our life time.

By: Pat Cunningham

Pat Cunningham — Fri, 11 Jul 2008 13:06:07 +0000

It’s just a mental bubble, Mike. I’m sure that’s what the overpaid execs at UBS are telling themselves.

By: Mike Carroll

Mike Carroll — Fri, 11 Jul 2008 12:55:23 +0000

Pat-There aren’t too many financial institutions that haven’t been hammered by the Fed’s easy money policy. The market will work it out eventually if it is allowed to work as it should and there will be pain. Every bubble (remember the tech fiasco during the Bubba administration?) has an endpoint.