I received this email from a private list I'm on with people in my area. I asked the author if I could post it on my blog because she actually had experience working in the bank industry. She agreed.
I do not usually get into e-mail debates, but I feel very strongly about the media's portrayal of the the "evil Bush administration" in regard to this banking crisis and the false reporting of blame.
I worked for Wells Fargo Home Mortgage at the Regional level during this era of "CRA" that is discussed below. The government at that time (Clinton/democrats) put an intense amount of pressure on the banks/mortgage companies to meet CRA numbers and penalized them for not meeting those standards. I remember the incredible amount of resources that WFHM had to put into being "compliant" with government requirements and regulations to put the "poor" into houses- even though they could not afford them. These CRA loans that the government required the banks to make, set up a perfect scenario for greedy bankers to abuse the system and made it difficult for the banks/bankers who had integrity to do an honest days work. WFHM was constantly up against and lost market share to those banks who practiced unethical lending. These banks did not care about the effects these sub-prime loans would have on the future of their companies, their clients or this country- they just rode the sub-prime wave and made lots of money while it lasted. I personally know that banks/mortgage lenders did sub-prime loans with little to no documentation to people who in no way, shape, or form could have afforded the mortgage they were getting. These practices were predatory in nature and endorsed by the government!
Sometimes you just have to say no because it is the right thing to do.
I very much admired one of the top management people of WFHM at that time because he was able to keep WFHM balanced and put in place many rules above and beyond what the government required to keep the books balanced and in check. He knew how to say no, even though it wasn't popular, and he made sure that the people that worked for him knew how to say no too.
I find it appalling that, according to the NYT http://www.nytimes.com/2008/10/15/business/economy/15bailout.html?ref=business, many banks that remained in the black and did not require a "bailout", because they were financially responsible with their depositors monies, were made to sign over a portion of their stocks to the government!!!!!!! Goodbye free market economy and welcome to socialism- and if Obama is elected, it will be the last nail in the coffin for democracy and the free market.
How much longer are we as a democratic nation going to allow this country to sink into the abyss of socialism- a lethargic form of government that doesn't work? Educate yourself and hold the correct people responsible for the mess we are in now. Rarely are the effects of new policies felt in the current presidential term, it takes years to see the repercussions of a former administration's decisions and policies. Case in point, we still suffer from the effects of the socialist polices put in place by the FDR administration and very few people today were even born when he was in power!
The Native American Nations are just now coming out of the welfare state that our government forced them into 100 years ago! It took away their individual dignity and pride of who they were as a people. Is this what you want for your children? What legacy are we leaving them?
By continuing to not only allow more governmental control in our lives, but to actually desire it, we are setting our children up for failure. The State of Louisiana and Hurricane Katrina should have taught us this. Self sufficiency, hard work and a desire to strive for something better is what makes this country great- "give a man a fish and he eats for a day, teach him to fish and feed him for a lifetime." Dependency on the government only leads to a lack of respect of oneself and each other- know your history- socialism does not work!
Respectfully submitted by a middle class voter.......
Heidi S Morris