(Bloomberg) -- The U.S. government can discourage
the type of flawed home loans that fueled a rise in subprime
defaults by making mortgage bond investors liable for deceptive
lending by banks, the Senate Banking Committee chairman said.
Investors in $6.5 trillion in mortgage backed securities
``have got to assume some responsibility,'' Senator Christopher
Dodd, a Connecticut Democrat, told reporters after a committee
hearing in Washington today. ``You have these mortgages being
held by the lending institutions for what, eight or ten weeks,
and then they're'' pooled and sold to investors who are
unaccountable for predatory lending.
Read more at Bloomberg Bonds News
the type of flawed home loans that fueled a rise in subprime
defaults by making mortgage bond investors liable for deceptive
lending by banks, the Senate Banking Committee chairman said.
Investors in $6.5 trillion in mortgage backed securities
``have got to assume some responsibility,'' Senator Christopher
Dodd, a Connecticut Democrat, told reporters after a committee
hearing in Washington today. ``You have these mortgages being
held by the lending institutions for what, eight or ten weeks,
and then they're'' pooled and sold to investors who are
unaccountable for predatory lending.
Read more at Bloomberg Bonds News
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