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States Rights: How the Bush Administration Stopped the States From Stopping Sub/Prime Crisis

The administration accomplished this feat through an obscure federal agency called the Office of the Comptroller of the Currency (OCC). The OCC has been in existence since the Civil War. Its mission is to ensure the fiscal soundness of national banks. For 140 years, the OCC examined the books of national banks to make sure they were balanced, an important but uncontroversial function. But a few years ago, for the first time in its history, the OCC was used as a tool against consumers.

In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative. The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks. The federal government's actions were so egregious and so unprecedented that all 50 state attorneys general, and all 50 state banking superintendents, actively fought the new rules.

But the unanimous opposition of the 50 states did not deter, or even slow, the Bush administration in its goal of protecting the banks. In fact, when one office opened an investigation of possible discrimination in mortgage lending by a number of banks, the OCC filed a federal lawsuit to stop the investigation.


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The sub-prime disaster (100 billion) is nothing compared to the

massive, unregulated derivative monster. Apparently, total derivatives in the top 25 banks amount to about 180 Trillion dollars.

Somebody's loss

is another person's gain. Who's raking in the chips on this move and why would Bush help them? Is he a partner or an underling who does what he's told?

New Hampshire and Ecuador.

Greenscam helping his mates

The Fed would have you believe lenders got too aggressive and borrowers got in over their heads but they'll choose to bail out the banks (complete collapse) than protect the dollar (collapse).

No secret , follow the money opensecrects.org

Real estate and financial services topped GWB's 2004 presidential contributors.