October 2, 2008

Behind The Deregulatory Curtain

By Ralph Nader:

Indeed, the right-wing pundits and the revisionists in
Congress are spending an inordinate amount of time falsely claiming that our nation’s current financial disaster stems from the Community Reinvestment Act, a law passed by Congress and signed into law by President Jimmy Carter in 1977. The primary purpose of this modest law is to require banks to report on where and to whom they are making loans. Community organizations have used the data produced as a result of this law to determine if banks were meeting their lending obligations in the minority and lower-income communities in which they do business. Congress passed this law because too many lenders were discriminating against minority borrowers. “Redlining” was the name given to the practice by banks of literally drawing a red line around minority areas and then
proceeding to deny people within the red border home loans – even if they were otherwise qualified. The law has been in place for 30 years, but the right-wing f ringe claims it somehow is responsible for predatory lending practices that date back just to the beginning of this decade.


click here for the whole thing

Dont' let anyone tell you this Wall Street meltdown was a result of regulation rather than deregulation.

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