Who was deregulated besides the banking industry? Fannie and Freddie?Or, who was directly affected by the banking industry's new-found freedom? And how do Fannie and Freddie tie in? I know what they are, the government-backed mortgage giants, but how exactly do they tie in to deregulation? Thanks! | |
Yes, they were also deregulated by Congress. The then democratic chairman of the house banking committee, Henry Waxman along with Barney Franks were the chief architects pushing both of these mortgage giants to make home ownership universally available to just about anybody who had a detectable pulse. Many applicants did not have the down-payment and could not afford the mortgage payments, so the 100% loan with negative amortization and special teaser rates were created. But here are some more scholarly articles about this subject:
http://associatedcontent.com/article...
http://press.princeton.edu/titles/9400.h...
http://liqt.org/fanniefreddie.html
http://cato.org/testimony/ct-ak-20081209.html
