Posts Tagged ‘financial crisis’
Even as the Fed helped to stabilize the situation over the weekend, the stock market is down again on Monday morning. What is alarming from our standpoint is that CIT, Lehman, and National City Corporation all are down – by 25 to 31 percent as we write this. Liquidity questions surround Lehman after what we learned from Bear Sterns. Even JPMorgan needed help and considerations from the Fed to buy Bear Sterns for a reported $2 a share.
Countries around the world appear to hold the United States responsible for the subprime crisis, as they rightfully should. In the United States many people hold the federal government responsible for lack of regulatory enforcement. Tracking the issue back even further, state regulations were set aside in favor of federal-level regulations established by the Office of the Comptroller of the Currency. In reality the OCC did little or nothing.