9.29.2008

Eliot Spitzer: Bush Shielded Subprime Predators

Eliot Spitzer had a deep understanding of the corruption on Wall Street, and he wasn't afraid to take on corrupt fat cats and politicians. Early on he warned that predatory lenders were gauging the little guy, and if left unchallenged, their greed explode our financial system.

Spitzer--along with the country's attorneys general--sought permission to do what the Bush administration refused to do: prosecute mortgage industry lawbreakers. They were flatly denied.

Shortly before Spitzer's fall from grace, he penned a letter to the editor of the Washington Post which included this warning:
When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits. So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.
It's clear that Bush and his cronies just don't care about average Americans. Think about it. The Bush regime not only didn't do their job but they actively worked to bar states from seeking to protect the people.

Now, the Bush regime proposes to bailout Wall Street and nothing for the subprime victims. A modified version of that bailout bill was just defeated -- ironically, by the Republicans egged on by the kings of chaos on rightwing radio. These racists blame the Wall Street meltdown on minority victims of subprime predator lenders.

Link: Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers

Eliot's Mess: The $200 billion bail-out for predator banks and Spitzer charges intimately linked