The Fed is a partner to the crime, Scooter.http://www.federalreserve.gov/boarddocs/surveys/craloansurvey/summary2000.pdfGSEs Fannie & Freddie were the problem. How Did Paul Krugman Get It So Wrong?
DEAD ON! Toro & Peepers need to read this........
Thanks for finding this article, I have debated this very point way too many times........
Results for Community Development Lending
Survey respondents report that community development lending offers a variety of
benefits to banking institutions. Virtually all survey respondents report that they benefit from
their community development lending because it promotes community growth and stability and
responds to the credit needs of the local community. Virtually none of the respondents report that
they undertake community development lending solely to obtain a satisfactory or outstanding
CRA rating.
On a per institution basis, nearly all banking institutions that provided responses,
regardless of asset-size category, report that their community development lending is either
profitable or marginally profitable (chart 7a).
Chart 7a: Profitability of Community
Development Lending
(percent of institutions)
Profitable
54%
Marginally
Profitable
39%
Break Even
4%
Marginally
Unprofitable
2%
Unprofitable
1%
Of course they're going to run interference for their willing political accomplices.