[RD] Democrats to Roll Back Dodd-Frank

[Zkribbler]

If that book is what told you that what the banks did was legal, then I'm going to go ahead and not read it because that's a pretty strong indication that the authors don't really know what they're talking about.

It does NOT say everything banks did was legal. It does track almost 30 years of legislation which, piece by piece, deregulated the mortgage & securities industries so that MUCH of what the banks did [e.g. subprime loans] was legal.

 

[Lexicus]

It does NOT say everything banks did was legal. It does track almost 30 years of legislation which, piece by piece, deregulated the mortgage & securities industries so that MUCH of what the banks did [e.g. subprime loans] was legal.

Subprime loans per se weren't the problem. The problem was liars' loans. And liars' loans, as well as securities based on liars' loans, are all illegal.

This is a good article about it.
https://www.huffingtonpost.com/william-k-black/how-did-a-relatively-smal_b_803502.html

Deregulation doesn't make stuff legal so much as it destroys the regulations that are essential to actually enforce the law.