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Monday, October 24, 2016

New York City Mayor Michael Bloomberg — whose relationship with the Occupy Wall Street movement has, to say the least, been frosty — decried protesters’ claim that bankers are at the heart of the financial crisis on Tuesday, pinning the housing and mortgage bust that started in 2006 squarely on the backs of poor borrowers and, of course, that perennial conservative villain: the Feds.

“It was not the banks that created the mortgage crisis,” Bloomberg said at a business breakfast in Manhattan. “It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp.”

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Copyright 2011 The National Memo
  • Marian Gwynn

    I practice bankruptcy law and for years have seen consumer debtors lose their homes because aggressive mortgage brokers convinced unsophisticated borrowers to refinance their homes at a higher value than the value of their house. How is this possible? The appraisers grossly over valued the houses. In addition the closing costs and mortgage origination commissions were excessive and were included in the principle of the new loans. The homeowner never ‘felt’ the pinch at closing, because no money was required to be paid out of pocket. The net to the homeowner was small but the new debt was large. I saw this over and over again. The bankruptcy court noticed it and did nothing about it, the head judge being a former counsel for citibank. I respect Mr. Bloomberg for his success as a businessman, but he knows absolutely nothing about the common man and woman and their struggles. I am not sure he has ever lived the life of a person with no money and no understanding of finance – a subject that even our esteemed legislators have difficulty understanding.