Why Were Mortgage Warnings Ignored?

Why didn't early warnings stop the rush to invest in risky mortgages? It's a question some are asking this week in light of news that the chief executive of mortgage giant Freddie Mac may have dismissed concerns raised in 2004 about an impending housing crisis. The New York Times reported on Tuesday that Freddie CEO Richard Syron failed to follow advice by David A. Andrukonis, the company's former chief risk officer, who warned that the loans bought by the company "would likely pose an enormous...Full Story
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