Probably the biggest factor that led to the problems in the securitization market were artificial demand created by bank capital rules favoring highly rated securities over whole loans.
Bunning discusses the impact of bank capital rules on securitization market problems.
Share
More from Jim Bunning
Should we not be concerned about the impact this, paired with the large budget deficits that this administration has projected, will have on my 40 grandchildren and future generations?
I want to explain why I will vote no on the nomination of Robert D. Reischauer to serve as a public trustee of the Social Security and Medicare Programs. Although he has a Ph.D. in economics and extensive experience with Federal budgetary…
But the SEC for 13 years has sat on their hands. So if you do not get the Justice Department involved in this, shame on you as the Inspector General.