A hearing was held by The Financial Oversight Congressional Committee this week, with many of the largest financial executives sitting for questioning by the committee. Maxine Waters asked some of the executives why there were so many mismanagement problems with student lending and subsequent loan defaults. As usual, as in most of the interactions involving Waters, she was clueless. Much to her dismay, she was informed that during the Obama administration, the student lending process was taken over by the government and no longer obligated the Financial Institutions.
Just another example of what the government should not be doing. What was absent from the hearing, were two points. The first being any discussion about the relaxed lending practices through Dodd-Frank legislation, and the financial instruments created and backed by those unsecured loans, that caused the historic banking and insurance collapse in 2009.
The second being any discussion about the failure of financial institutions to put stop limits on investors trade orders, or short orders to hedge their losses, and the failure of the Securities and Exchange Commission to hold them accountable to pay restitutions to those who lost a fortune in their retirement accounts, many of those accounts being held by the investors’ employers. Those employees had no option to sell or trade out of those accounts without severe financial penalties, leaving them exposed to the full collapse of the market and severe decline of their retirement accounts; many who still have not recovered from their losses now 10 years later.
The Democrats want to pay restitution to descendants of slaves, for Pete’s sake, but not to those who lost their life savings from the failed Democrat policies as outlined in points 1 and 2 above, which were responsible for the financial collapse.