The Role Of Government Affordable Housing Policy

1424 Words Nov 17th, 2015 6 Pages
That direct quote is from a staff report of the U.S. House of Representatives Committee on Oversight and Government Reform, “The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008” which took place July 7th 2009.
When Occupy Wall Street was happening Michael Bloomberg backed up this observation.
“At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.
The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.
The edict — completely overlooked by the Financial Crisis Inquiry Commission and the mainstream media — was signed by then-HUD Secretary Henry Cisneros, Attorney General Janet Reno, Comptroller of the Currency Eugene Ludwig and Federal Reserve Chairman Alan Greenspan, along with the heads of six other financial regulatory agencies. … (Morrissey 2011)”
So what you had was again government getting in the way of sound business practices. Forcing banks and other…

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