Friday, March 23, 2007

Fed finally recognises the problems (it’s caused)

Fed acknowledges sub-prime errors

The US Federal Reserve should have been more aware of the financial risks posed by the sub-prime mortgage market, a senior Fed official has admitted.

Posted by holding out @ 08:18 AM (505 views)
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9 thoughts on “Fed finally recognises the problems (it’s caused)

  • japanese uncle says:

    Exactly as I have been maintaining for a while, “incompetence defence” is becoming very popular among central banks. Funny enough.

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  • Shouldn’t we in the UK thank our lucky stars that financial misselling was restricted to the retail banking practices revealed on the BBC two days ago?

    ………Mmmmmmm………..I wonder how long we have to wait for the ‘mortgage misselling in the UK’ story to unfold.

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  • royston……there’s alot about……the article suggests buy to let are putting money in each month to make the figures work,however, officially there should be a 20% deposit and the rent cover the mortgage by 120%………fraud on a big scale if you ask me with rental agencies being paid cash to inflate the figures and buy to let borrowing the deposit.

    nasty

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  • dohousescrashinthewoods says:

    “should have been more aware”, um, didn’t they explicitly engineer it?
    “incompetence defence” indeed! Sounds like Gordon and his economic stability to me.

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  • What a total joke – as if they were unaware of the financial risks posed by sub-prime mortgages. It’s like saying, “come on kids, let’s party in the candy store – but no eating the sweeties”. This is just a phoney apology for inflation and bubble creation – pathetic really. They knew all along what they were doing.

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  • dohousescrashinthewoods says:

    Has anyone seen the Nikkei? Up 35.25%?
    What is going on?

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  • I wonder how long we have to wait for the ‘mortgage misselling in the UK’ story to unfold.

    i was thinking this to, they did the same with endowment mortgages, it looks as though there could be claims made for mortgage misselling, they only have there selves to blame for this, and i hope they go to the wall,

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  • With the fed (and mortgage companies) admitting their part in the subprime scandal over in the US, I wonder if those people (or groups of people) burnt by the whole scandal, will individually and collectively launch lawsuits against both the fed and the banks?

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  • dohousescrashinthewoods says:

    Ah, just FT.com being broken again. Looks like 0.35% now.

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