Govt had a big part in making things so that so that subprime loans made money.
The standards for regulated assets, which is what banks really need, are established by govt. Those standards favored Fannie and Freddie. Those standards also rely on govt-chosen rating agencies.
As to the "encouragement", W was the "ownership" president, so he was looking for ways to encourage lending.
The standards for regulated assets, which is what banks really need, are established by govt. Those standards favored Fannie and Freddie. Those standards also rely on govt-chosen rating agencies.
As to the "encouragement", W was the "ownership" president, so he was looking for ways to encourage lending.