Clinton warns Wall Street
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- December
- 5
In a speech this afternoon at the NASDAQ MarketSite in Midtown Manhattan, Sen. Hillary Rodham Clinton issued a stern warning to investment firms and traders that they need to take voluntary steps to alleviate the subprime mortgage crisis or face federal regulation.
“I believe Wall Street shifted risk away from people who knew what was going on, onto people who did not,’’ Clinton said. “Wall Street may not have created the foreclosure crisis but Wall Street certainly had a hand in making it worse.’’
However, Clinton also noted “that good things have happened in the housing market’’ with homeownership at a record 69 percent last year.
Clinton repeated her call from earlier this week for a 90-day moratorium on foreclosures and a five-year freeze on the interest rates of existing subprime loans.
“What I am proposing is a comprehensive workout, not a bailout,” she said.
According to the Senate Judiciary Committee, which held a hearing on subprime mortgages earlier today, an estimated 2.2 million homeowners face foreclosure and 44.5 million homes have dropped in market value.
The Bush administration plans to weigh in with its plan tomorrow.
This entry was posted
on Wednesday, December 5th, 2007 at 3:41 pm by Brian Tumulty.
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