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He blamed others for the crisis: Democrats who dropped barriers to borrowing in order to promote homeownership; what he once termed "predatory borrowers" who took out mortgages they could not afford; banks that took on too much risk; and large financial institutions that did not set aside enough capital to cover their bad bets.
Instead, he faulted "predatory borrowers".
Gramm has put the blame for the subprime fiasco on "predatory borrowers".
Others cite everything from global capital flows, lousy regulation and shareholders' incentives to regulatory capture, inequality and "predatory borrowers" who gamed the system to extract credit.More disturbing still is that even some basic facts are not agreed upon.
Phil Gramm, the former senator who championed much of the deregulatory legislation, blamed "predatory borrowers" who shopped for a mortgage when they were in no position to buy a house.
In a 2001 prequel to the rants popularized Rick Santelli and Larry Kudlow, Gramm said the problem was the "predatory borrowers".
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And because the federal government has not established a broad set of regulations against predatory lending, borrowers face new issues.
Some lenders may be predatory and many borrowers are irresponsible, but this debate would be much less loud if tuition were not rising so quickly.
Wells Fargo was among those accused of discriminatory practices in the lead up to the financial crisis, including targeting minority borrowers for predatory loans.
The agency it calls for -- a unit specifically charged with protecting borrowers from predatory lenders -- survived attacks by the financial services industry and Republicans.
Dodd's original reform proposal in November had called for a strong, independent consumer-focused agency to protect borrowers from predatory lenders.
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