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The FSA is trying to reduce the mis-classification of non-performing loans by creating a database with information on 150-odd big, dud borrowers.
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Control fraud begat additional control fraud and created the perverse incentives that spread "echo" epidemics of control fraud through other professions (loan brokers, appraisers, and auditors) by creating a "Gresham's" dynamic in which bad ethics tends to drive good ethics out of the markets and professions.
Congress could address the credit problem by creating a federal loan guarantee program for autos, much like the ones we have for homes and businesses.
The rationale was the same: by creating a strong secondary market for student loans, banks could free up even more capital to loan to our students for their postsecondary education.
A startup in Y Combinator called bxblue wants to change that by creating a marketplace for borrowers to evaluate multiple loan options all in one place.
The CFPB suggested this week that policymakers could stimulate refinancing activity by creating a program that would provide lenders such as Sallie Mae with cheap loans that would be secured by newly refinanced student loans as collateral.
But beyond lower fixed loan and refinance rates, CommonBond also hopes to attract student borrowers and alumni alike by creating a community around the lending process.
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It was only late in the global crisis, when Greece admitted to lying about its numbers, that the markets woke up from their torpor into a sudden panic over sovereign risk.Governments responded first by signing over vast emergency loans to Greece and then by creating an even vaster temporary loan facility (partly using IMF money).
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Specifically, Fattah is alleged to have misused $600,000 of a $1 million campaign loan by creating what the department describes as "sham contracts and false entries in accounting records, tax returns, and campaign finance disclosure statements".
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