A 35-year veteran of the banking industry speaks out. An excerpt:
So far, despite doling out more than $125 billion in new capital to banks, the government has been unwilling to do anything more than politely ask the banks to make more loans. That approach is never going to work. Since 1999, the government has issued several guidelines to the banks, warning them of the potentially disastrous consequences of diving into the risky subprime mortgage market. It has urged them to curtail this behavior. The banks refused to listen and went head-long into that market, driven solely by greed. For the government to now believe that the big banks are somehow going to have an epiphany and change their behavior is delusional.