The Justice Department said last week that it is investigating General Motors' financing arm over its
subprime lending practices.
While it is not possible, in this study, to identify personal prejudice on behalf of lenders, racial disparities in
subprime lending are nonetheless part of a long trajectory of structural, race-based disenfranchisement."
Finally, Duke tackled the question of whether any signs suggest that community bank lending poses the same risks as
subprime lending, which shared many of the same characteristics.
He exposes the 'mistakes' and shady dealings by banks, lending agencies, regulators, and lobbyists, focusing on three main aspects of the crises: new capital standards, Fannie Mae and Freddie Mac's
subprime lending, and the high-risk strategies of investment banking firms.
"The
Subprime Lending Crisis and Reliable Reporting: Limitations to the Use of Fair Value in Unstable Markets," by Benjamin P.
Since then, he said, his job has always been a "bit crazy," never knowing what he would be dealing with next, whether it be a bank merger, compliance with Community Reinvestment Bank regulations, the growth of
subprime lending, the foreclosure crisis, criticism (unfounded, Little would say, when it comes to community banks) of banks in the wake of the federal bank bailout.
Indeed, lending to governments and banks in the European periphery represents the European equivalent of
subprime lending in the US (which was also concentrated in a few sunshine states).
As with the collapse of the
subprime lending industry, the showdown between for-profit colleges and the government shows how the aspirations of the underserved, when combined with lax regulation, make the rich, richer and the poor, poorer.
The appeal of
subprime lending is the same as ever: It is more profitable for banks (unless too many borrowers default).