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Submitted 394 days ago...

steviemom

New User (7)

Why are the banks being blamed for the financial crisis?

Why blame the banks for the current financial crisis? Aren't the real culprits finance companies, wall street, and mortgage lenders who participated in Sub Prime lending? The big banks taking the TARP money are also responsible, but why are ALL banks being blamed?

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Answer 1 / 3 - Submitted 394 days ago...

Trove882

Brain (2,382)

Not all banks should be blamed. A lot of the smaller, local ones did not participate in the swaps and other illegitimate lending. And they are solvent.

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Answer 2 / 3 - Submitted 394 days ago...

jim5456

Brain (2,932)

Congress forced the mortgage institutions to take on bad loans from people you couldn't pay them back and fanny may and Freddy mac was telling everyone they were in great shape [lied]when people walked away from the loans every thing crashed there is also some question about several trillion pulled out of the stock market about 6 months before the election and gov covered it up so who did what everyone blames everyone else and none are taking responsibility [ it just happened --the devil made them do it ]

This answer was edited by jim5456 394 days ago.

Reason: ed

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Answer 3 / 3 - Submitted 392 days ago...

ProAdviser

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Some of the largest banks were some of the largest sub-prime lenders as well. Banks are primarily lenders, that's how the use the money we put into savings and checking accounts. They pay us 1-2% for the use of our money and then lend it to homebuyers, refi's, etc. at much higher rates. They got sucked into sub-prime just like mortgage brokers because they could charge people with bad credit exorbitant interest rates on their loans.

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