Of course, the heavy lobbying never stopped even when these groups had no money to spend. They just spent the TARP money to lobby again to make sure the obedient Congress would not bother to introduce anything they didn't like. Best system money can buy. Thanks for nothing, Congress. Again.
The study did not name any of the lenders but the language in it implied that they were among the biggest banks and mortgage brokerage companies in the nation.
"Lenders that lobby more intensively on these specific issues have (i) more lax lending standards measured by loan-to-income ratio, (ii) greater tendency to securitize, and (iii) faster growing mortgage loan portfolios," the report said.
"Ex post, delinquency rates are higher in areas in which lobbying lenders' mortgage lending grew faster, and, during key events of the crisis, these lenders experienced negative abnormal stock returns," it added.
