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Friday, April 29, 2011

'Lenders Who Lobbied Hardest for Deregulation Took Most Risks'

put them in jail...........from wsj blogs.........


"Three International Monetary Fund researchers said the mortgage lenders who lobbied most aggressively in Washington for less regulation took more risks and exposed themselves to worse outcomes during the financial crisis than more conservative firms that didn’t lobby.
Deniz IganPrachi Mishra and Thierry Tressel said these same lenders were more likely to receive money under the federal government’s bank bailout, possibly because these firms were hit harder during the crisis and had relationships with key lawmakers. (Read the full paper)
The researchers noted that Citigroup Inc., for instance, which nearly collapsed during the crisis and which required $45 billion in government support to stay alive, lobbied intensely against a 2001 bill that aimed to put tighter restrictions on lenders. A Citigroup spokesman declined to comment"........read it here

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