By Rob Peters
Financial Services Editor
As I write this article, IndyMac Bank, a large and active mortgage specialist was seized by federal regulators, in the third-largest bank failure in
Today maybe more than ever, we as individuals, business professionals, and corporations must keep commitments to our families, customers, partners, employers. And even government regulators.
With all the turmoil in the banking industry, it has become very clear a new approach is required to continue the flows of capital across the
In this interconnected world, when “commitments” are not kept they have a tsunami effect on financial services and economies across the globe (that we have seen the last 12 months).
Fannie-Mae and Freddie Mac, the two stockholder-owned, government-sponsored mortgage companies, whose functioning is critical to efficient functioning of the
Banks selling complex mortgage loans to individuals who clearly do not understand the “fine print”. - - WHERE IS THE TRUST?
Investment Banks selling Collateralized Debt Obligations (CDO) to Investors who clearly did not understand the risk of these pools of capital. - - WHERE IS THE TRUST?
A laissez-faire government environment which created a long-term environment of “cheap” money created this mortgage “bubble”. -- WHERE IS THE TRUST?
And YES, even Individuals who took on 0% down-payment adjustable-rate-mortgages that they did not understand and probably new that that they would be faced with a problem in the future, but chose to grab the dream of home ownership NOW. -- WHERE IS THE TRUST?
I propose a new path to take for the future.
We as individuals, corporations, financial services firms, and government agencies need to develop and follow a code of behavior in this interconnected relationship capitalistic world.
The choices and actions we make effect our community, country, the world, and future generations not even born yet.
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