I thought I would repost this again. This is Spitzer's Op-Ed in 2008 about predatory lending warning. One month after his Op-Ed, Spitzer was hit with the Emperor Club prostitution scandal. Days later, Spitzer resigned as the Governor of New York.
How the Bush Administration Stopped the States From Stepping In to Help Consumers
By Eliot Spitzer
Thursday, February 14, 2008; Page A25
Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.
Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.
Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York's, enacted laws aimed at curbing such practices.
What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
Read on.
1 comment:
Yes SPB if only Americans had bothered to read instead of watching American Idol they would have known Spitzer was about to bust open the biggest crime scam. But like sheep Americans followed their leader who said hiring a prositute is a crime that a Law Makers should got fired or resign. Now Americans looked the other way with Foley trying to molest kids, Craig looking for sex in the men's room and Vitter who is still hiring prositutes. Rush to judgement as we destroy people and then say oops. The same thing was done with Congressman Condit who had his life and career destoryed because of cover ups by the DC police and the Levy parents who hadn't spoken to their daughter in years. So quickly the headlines read Congressman Gary Condit had and affair with Chrandra and killed her. Only to find out Chandra had a boyfriend and fooled around with many many men. Her parents lost her so they made her out to be the virgin mary. Now the killer is found and the case is closed. Not one person cares that they destroy the Condit Family. Spitzer was treated the same way rush to Judgment. Now the law has been broken by the Govenment. This op-ed could have save millions of Americans from losing their jobs, homes and life savings but it was easier to listen and not read for ourselves. Now Americans are still so lazy they expect President Obama to wave the Magic Wand to bring time back the way it was in 1999. At lease Spitzer tired his best to save Americans to back they kicked him in the butt for it.
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