Countrywide - The next big political scandal?

HMTKSteve

Countrywide Financial Corp.'s "friends of Angelo" program provided sweetheart loans to key banking players in Washington, D.C. They included former Fannie Mae chief executive Jim Johnson, Senate Budget Committee Chairman Kent Conrad (D., N.D.) and Senate Banking Committee Chairman Christopher Dodd (D., Conn.).

Congress and the Countrywide Scandal *disclaimer: story is written by former Republican House Majority Leader Dick Armey

If the contents of the article are true I have to say that using the FHA as a dumping ground for banks to get rid of high risk loans is a serious mistake. I don't want to see any banks fold (not that the big ones would) but I also do not want to see them make bad decisions and then get away scott-free. If you take away the risks associated with lending what will stop the practice from continuing?

ladyobsolete

That is tough. I look at the subprime mortgage issue as something akin to the dot com bubble since it was all about selling these mortgages and then selling them off to a "greater fool." The major difference, of course, is that these are major, established banks that are failing. I have to say there is some vindictive side that wishes that the banks had to pay for their short sightedness but, really something has to be done. Damn government corruption doesn't make things any better. Has anyone found any corroborating articles? Lawrence Lessig certainly has his work cut out for him.

Schnevets

From a pure, media-circus standpoint, I doubt this story will get legs. The mortgage crisis is mainly portrayed in an emotional style ("This poor, single mother of five lost her home in April...") and never actually goes into the facts. No matter how bad this is, it can't compete with the election, and so will probably stay within the senate, and get a senate-made solution.

It's disappointing, but that's politics...

ladyobsolete

Unless it can be tied to the election. So and so's _____ adviser implicated in scandal.