“So when Barney Fwank, Dodd and Cuomo forced banks to make bad loans”
You might want to check your facts. You are confusing CRA regulated depository banks with Wall Street investment banks. This concerns investment banks, not commercial banks. Wall Street investment banks weren’t subject to regulations forcing them to make loans.
Not only weren’t they forced to make subprime loans, they actively sought to get laws changed to let them get into that market. They were cranking out trillions of dollars of risky paper because it made them incredible amounts of money.
I worked for the former GMAC Commercial Mortgage in the run up years to them being sold OFF to help keep GM afloat. They were bought by Capmark Finance which was a 3 partner corporate conglomeration...can you guess who was one of the big 3? YEP! Goldman Sucky Sachs! Now, who owns GM? Oh Yeah! Obummer and gang!
No, but they speculated on the garbage the Gov't was perpetrating on the mortgage banks. Speculators have a way of speculating on what's out there, y'know?
If someone did something illegal, go get them. But the biggest shysters were Dodd, Frank and Cuomo IMO who out of one side of their mouth forced atrocious loans, then out of the other said the nation's finances were fabulous while forcing the taxpayer to bear the burden of the laws they pushed.
To change the rules forever now by creating draconian Gov't oversight boards because of laws the Gov't PASSED IN THE FIRST PLACE is typical of the anti-capitalist clowns who are running things. I suspect that the 2 Repub SEC officials who voted against the GS action are thinking along the same lines.