Thursday, May 26, 2011
On Tuesday, Fresh Air did a program on the collapse of mortgage market that may be of interest to Property Profs.
Dave Davies interviewed Gretchen Morgenson, who writes about financial markets for the New York Times, on her new book, Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon. Morgenson and her co-author chronicle:
the failure of regulators to control greed and recklessness on Wall Street. And it focuses particular attention on the managers of Fannie Mae, the government supported mortgage giant. Morgan writes that CEo James Johnson built Fannie Mae into the largest and most powerful finacnial institution in the world. Morgenson details how the company fudges accounting rules, generated big salaries and bonuses for its executives, used lobbying and campaign contributions to influence Congress, and encouraged the risky financial practices that led to the crises.