31st December 2007
WSJ (sub required, but well worth the money).
The subprime industry succeeded in defeating state efforts to limit risky lending to borrowers with weak credit during the housing boom. Ameriquest, until recently one of the biggest lenders, distributed over $20 million in political donations and swayed lawmakers in New Jersey and Georgia.
That’s the way the system works — the government causes a problem, and then makes a big deal about how they have to step in and “fix” it.