Flashback: Predatory Lenders' Partner in Crime; How the Bush Administration Stopped the States From Stepping In to Help Consumers
Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.
Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.
Ironically, it was barely one month from the date of this article (12 March 2008) that Spitzer resigned as Governor of the State of New York over allegations he '..." has been caught on a federal wiretap arranging to meet with a high-priced prostitute..."
Note that this wiretap was federal, and not from New York State.
Was that wiretap coincidental, after Spitzer's having written this article?
This might explain the rather disproportionate attention to Spitzer's sex scandal by the corporate media.