Regulators eye Wall Street role in housing bust

Regulators eye Wall Street role in housing bust

www.msnbc.msn.com

BOSTON - Regulators are trying to punish Wall Street for mortgage finance practices that expanded home ownership and spread risk among a host of new players — but also may have duped borrowers and investors who supplied cash to fuel a housing boom that's turned bust.

A handful of state securities regulators and a couple foreclosure-blighted cities have fired the opening shots with lawsuits trying to prove that investment banks and big lenders are guilty of more than just bad business decisions and failing to foresee looming mortgage troubles.

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Well, after reading this, I wonder if this will finally push the market over the edge and really bring on a heavy recession. Anyone with good financial expertise please comment...



www.msnbc.msn.com
(visit the link for the full news article)

The thing that always gets me about these problems is that now that the party is over the powers that be will want us taxpayers to pick up the bill and bail these bigshots out! Just wait and see!

Oooops closed the wrong duplicate

My apologies

Fred

[edit on 2/18/08 by FredT]