Bush Regulators Forced States to Stand Down

[Crux]

When state officials across the country detected predatory and reckless banking activity over recent years, such they did in the case of WAMU and other now-failed institutions, Bush-appointed federal bank regulators ordered the states to stand down. By this practice, legal interventions from the states were outright banned at the federal level, effectively blocked by the command of the President himself, beginning as early as 1990.

 

The investigative article, Mortgage system crumbled while regulators jousted, published in today's Seattle PI, details how corrupt bankers were aggressively protected by Bush appointees serving in their capacity as federal "regulators." The article begins by describing the Bush administration's ban against any state investigation of wayward lenders as being part of some kind of turf war. I'd be one to call it what it is. I call it a robbery.

 

BushCo has literally robbed the nation of its treasure, through guile and force, and at a cost often measurable in lives lost. Given the bewilderment of those now evaluating the damage done, a fitting punishment, to date has been determined to be a golden parachute valued at $700 billion. Surely we can do better, and we should -- justice will not be served until the punishment fits the crime.

 

 

[joblo7]

there's a big surprise.........!so yuor like saying there was a conspiracy ....wow! who knew????

Edited October 11, 2008 by joblo7

[Gary_Yngve]

aren't the repubs all supposed to be about states rights?

[Phil K]

You mean like in Bush v. Gore?????????

[STP]

When state officials across the country detected predatory and reckless banking activity over recent years, such they did in the case of WAMU and other now-failed institutions, Bush-appointed federal bank regulators ordered the states to stand down. By this practice, legal interventions from the states were outright banned at the federal level, effectively blocked by the command of the President himself, beginning as early as 1990.

 

The investigative article, Mortgage system crumbled while regulators jousted, published in today's Seattle PI, details how corrupt bankers were aggressively protected by Bush appointees serving in their capacity as federal "regulators." The article begins by describing the Bush administration's ban against any state investigation of wayward lenders as being part of some kind of turf war. I'd be one to call it what it is. I call it a robbery.

 

BushCo has literally robbed the nation of its treasure, through guile and force, and at a cost often measurable in lives lost. Given the bewilderment of those now evaluating the damage done, a fitting punishment, to date has been determined to be a golden parachute valued at $700 billion. Surely we can do better, and we should -- justice will not be served until the punishment fits the crime.

 

 

The Bush Administration and many banks clung to what is known as "preemption." It is a legal doctrine that can be invoked in court and at the rulemaking table to assert that, when federal and state authority over business conflict, the feds prevail — even if it means little or no regulation.

States warned about impending mortgage crisis--BusinessWeek

[TREETOAD]

These guys have done more damage to your country in the preceding eighth years than Osama could ever have dreamed of doing!!

[j_b]

Free market fundamentalists quickly found out the public wouldn't stand for overt dismantling of regulations so instead, to prevent the enforcement of rules, they installed anti-regulation/industry-lobbyist types at the head of regulatory agencies.

[TREETOAD]

All those fundamentalist guys seem to be bad.