Government failures aided housing bust, says FDIC’s Bair
Sheila Bair, the chair of the Federal Deposit Insurance Corporation (FDIC), on Friday said government policies were partly to blame for a number of activities that encouraged risky lending during the recent housing bust.
At an event in Topeka, Kansas, Bair said regulators were not sufficiently vigilant in supervising financial markets and that government-encouraged risk-taking created incentives for lenders to take excessive risks.
Bair said government policies offering favourable regulatory
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