The Oracle Rewrites History | Mother Jones

The Oracle Rewrites History | Mother Jones: “What Greenspan left out is those guidance papers, as their name implies, didn’t require the recpipients to take any action whatsoever. He also neglected to mention that in spite of boatloads of research showing the proliferation of abusive lending practices, the Fed, as the Washington Post reported, not only blew off those worrying signs but refused to supervise lenders and their compliance with federal consumer protection laws. In 1998 it even adopted a policy ‘to not conduct consumer compliance examinations of, nor to investigate consumer complaints regarding, nonbank subsidiaries of bank holding companies.’ And when non-bank lenders were snapped up by big banks, which the Fed did actively supervise, it declined to scrutinize those non-banking subsidiaries.”

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