Larry Summers as Ineffectual Regulator: Tall Tales From the White House
The Obama administration push to get Larry Summers as Federal Reserve Board Chair is moving into overdrive, as they pull out all the stops. Last week they gave the public the story of Larry Summers as a prescient but frustrated regulator. Summers saw the problems in the subprime housing market way back in 2000, but couldn’t get anything through an obstructionist Republican Congress.
Exhibit A in this story is a joint report on predatory lending by the Treasury Department and the Department of Housing and Urban Development (HUD) that was issued in June of 2000, back when Larry Summers was Treasury Secretary. The report lists many of the abuses that underlie the explosion of bad loans in the housing bubble years. Unfortunately the report’s recommendations were blocked...Read Rest here.