Mayor Michael Bloomberg Blames Congress and Defends Banks, Over the Mortgage Crisis

Speaking at a business breakfast in midtown featuring Bloomberg and two former New York City mayors, Bloomberg was asked what he thought of the Occupy Wall Street protesters.

“I hear your complaints,” Bloomberg said. “Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I’m not saying I’m sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn’t gave gotten them without that.

“But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it’s one target, it’s easy to blame them and congress certainly isn’t going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans. This is exactly the same speech they criticized them for.”


34 Responses to “Mayor Michael Bloomberg Blames Congress and Defends Banks, Over the Mortgage Crisis”
  1. The banks were not pushed into fraud, and ponzi schemes. This man is way out in lefttt!!!!!!!!!///////////// field! What does he think we are doing Bitching? We are trying to make the world better by exposing fraud and the worst controlled egregious, downright evil fraud, in our history. However I do believe the banks have been doing this on a smaller scale for centuries. This guy is an Idio*********** or a liar, or totally uninformed and should be givin no credibility to be of the know, or worse an outragious liar.

  2. CaitlinO. says:

    Here’s a fantastic article laying out in detail how and by whom our democracy has been corrupted. I’d seen pieces of it before but have never seen it all laid out in one place like this:

  3. rictic says:

    But But But Mayor….. Wall Street OWNS CONgress, just like they OWN you……

  4. Steven Cranson says:

    This statement is pure horseshit and Bloomberg knows it. I suppose the media, politicians, elements in
    our captive government keep repeating this lie, suddenly everyone will decide that the Banks aren’t responsible for anything.
    Lie, lie, lie:
    ” It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp.”

  5. CaitlinO. says:

    Hey Big Apple – Looks like it’s time for the Big Recall.

  6. Walls Street give billions to politicians during the years to get deregulated more and more so they can freely play with peoples money like a casino gambling, a Ponzi Scheme and freely commit fraud. End of Story

  7. Where they also the ones that made Bank of Defrauding America sell the same loan six times to six diff. people Mr. Bloombooger!
    Not the banks faul!!!!!! They created a “Moral Hazard” Mr. Booger!
    My name is John Wright AND I AM FIGHTING BACK!

  8. Paul L. Bishop says:

    This is painful to watch, as he is by all accounts a solid businessman. To make these assertions privately would be insane, in a public format with people marching in the streets, says that he is on a payroll or completely disconnected from reality. As in ’68, when the silent majority stepped in change happened, so far we don’t have a Dr. King or a Cronkite, but millions of Americans losing there homes will go from a ripple to a tidal wave. Bloomberg and the Banks will be swept away by it, watch Oakland, Calif. tomorrow – OWS will shut the City down.

  9. How’s this for child like language. You should educate yourself on what the central bank is doing to get the federal government to push this country into economic decline. The FED creates money and sells it at interest to the US treasury, The FED creates a ponzi scheme for debt that will never get repaid. They create the principal and never the interest money to pay that principal.

    You say this is the Governments fault, Congress. Congress as well as your office are puppets for the Federal Reserve and the special interest groups for the banks. You feed this dribble to people that are missinformed and uneducated. You simpleton. You are not fit to serve in office, you do not disclose the truth about our monitary economic system.

    We have an administration that serves the banks and wall st. The Obama adminstration has done nothing to go after the people that created this disaster and probably never will. With all of the administrations Goldman Sachs employed the the Obama administration and supporters in the White House cabinet, how canthe banks lose?. Your F*@*ing right! I am pissed off. It’s time to get pissed off. I am a Veterean and served this Great Country, Honorably! For what? for special interest groups, corrupt government, a false President that is violating the office of the Presidency by not being a US Citizen as the Constition requires. For sell outs like yourself to continue the deceipt by the banks.

    Disclose to your constituants the special contributions to your campaign. Let’s see if your white as the driven snow. Disclose your financials. Let’s see where your loyalty lies.

    I took an oath to protect this country from enemies foreign and domestic. It is time to fight our domestic enemies from plants like you in office. Do not try to discredit my post as childish anger. You and all of your constituants will face the reaper soon enough…I and the American people have had enough of your and the governments rhetoric.

    Tread lightly with the false displacement of blame. We see you toeing the line and pretending to represent the people, yet you defend the banks. Continue to defend the banks and they will support your campaign for reelection, if you get reelected. The truth shall be your downfall. The American people will prevail against corrupt politicians and corrupt government.

    On the OWS issue you order the Police that are there to protect and server. Yet the order is to arrest peaceful protestors that have a right under the Constitution to protest, yet you order the police to down riot gear against protesters that have no battons, rubber bullets defenses, helmets etc… You order police power to force the disbursment of the protesters. You order police officers that live and work in our communities to violate the constitutional rights of all protesters that are ironically are protesting to defend the rights of those officers that are macing and beating the protesters. But, their just following orders right? The order comes from you! What s your stance on the constitution. You took an oath to defend the constitution and thus the rights of those protesters. Your order to the Police is to do what, exactly?

    If you cannot tell the truth, you should step aside and allow a real leader for the people to stand tall for the people.

  10. Beth A. says:

    We’re not supposed to hate.
    So, I’m sorry. Really, I am.
    But if I have to be honest about my feelings –
    I have ALWAYS hated this guy.

  11. Ron Moss says:

    That figures from the other Israel

  12. Debbie says:

    Hope he never decides to run for political office beyond Mayor of New York City because should he decide to do so, I will campaign against him endlessly using all the legal technology available.

  13. Pathetic loser! Selling for the banks. Sell out bitch.

    • lvent says:

      People have to look closely at who contributes to these politicians campaigns and what their investments are…These politicians are using more and sneaky ways to funnel wealth to themselves…I saw a report today that Obama will not take campaign donations from lobbyists but he will accept donations from corps that are not registered lobbyists like Phizer….

  14. Ron Moss says:

    As you Bloomberg is involved with the Israel led by Netyanyahu while the real Israel wenton up to England as nown as thr Royal tribe of Judah represented by King David, King Richard, On down to King George, The father of the present Queen Elizabeth, In fact I have a chart that demonstrates the lineage from Judah to Elizabeth without missing a name. Maybe If I can afford it some day I’ll put it in a book. Calling it the coronation Throne over the stone of Jacob as found by Willie Kilbride

    • lvent says:

      Ron Moss…same thing is going on here in America…..very different personages than who people believe are running America and other countries…..There is hidden power structure of NWO members who are traitors to their country and fellow man……Not one race or religion is behind this…that is all a facade.

  15. David Robert says:

    Lone Patriot has drank the koolaide, there is NO hope or reasoning with them. Is Lone Patriot that stupid or have they spent to much time watching the NFL, NASCAR & American Idol that he missed the part that the Banks created the money off the signature of the borrower and loaned the borrower their own money in the first place and have no skin in the game whatsoever, then they turn around and monetize the Note then they turn it into a Certificate and sell the fraudulent misrepresented Note to Wall Street, get paid (again) and then lie their asses off by saying they have the right to foreclose? Did they miss the movie “Inside Job”? did they not read Modern Money Mechanics? the Two Faces of Debt? watch Freedom to Facisim? WTF – these fukkin morons who blame the people for this well planned and executed wealth extraction process upon the American people put forward by the Rothschild Cartel make me want to fukkin choke their asses. Go back to sleep Lone Patriot your fukking worthless as tits on a bull.

    • Lone Patriot works for a hedge fund. I love when they do not mask their ip address when trolling from the office…

      • David Robert says:

        thanks 4closureFraud for that tid-bit of info on Lone Patriot, IP address as we all know, you can’t fix stupid.

      • ka11a1 says:


        Your cause has more support in the finance world than you might think. Our lives and future in this country depend on the end of crony capitalism and the re-establishment of a functioning financial system with fair rules for everyone. Keep up the good work on Zero Hedge.

    • Lone Patriot says:

      How did I blame the people in my comment? The blame rests squarely on the shoulders of the banks that originated the loans and Congress who originated the policy that allowed for the creation of the loans. Maybe you missed the point of my post because you were too busy typing your angry, hate filled rant in response to my comment.

      I am suggesting is that banks stop originating mortgages that they know will fail simply to collect a fee then pass the buck. I am also suggesting that homeowners keep their homes and banks get forced to take a haircut on their home loan portfolios to alleviate the crushing burden of debt and foreclosure for the borrower when the price of their home was essentially inflated beyond what the average american was able to pay. Home prices should track wage growth (which has been flat for the last decade), but instead they were going up 10% per year (There is something very wrong with this math!). When home prices don’t track wage growth, then they are unaffordable unless you can find someone willing to lend you the money to buy them. Bad housing policy and bad banking practices resulted in a lot of bad loans being created for houses that weren’t worth what was being paid for them and a whole lot of bankers and politicians made out like bandits. Bloomberg is right in that the solution is a change in policy that can only be solved in Congress. It was never a good idea to inflate home prices to unaffordable levels simply by originating a policy and lending system that would give a loan to anyone (when the people invovled knew damn well they wouldn’t be paid back)

      I speficially mentioned that the banks had zero accountability for the loans that were being originated (to your point that they have no skin in the game) and noted that the excess debt in the system (which drove prices up) was created by the origination of the bad loans (to your point that false “money” was being created through the origination of the loans).

      Near as I can tell we said the exact same thing (except that I feel like the government has some accountability here and owes us a fix), and yet you still lampoon me with foul language. Here’s some advice: If you ever want to sound credible in a post avoid using phrases that a 12 year old would say.

      • lvent says:

        Lone Patriot…The debt was caused by overspeculating and overleveraging by Wall Street..and they did a lot of hedging of bets on alot of nothing…..These financial institutions involved with the mortgage derivatives fraud are sitting on 600 trillion in mortgage dervatives backed by zero…This has alot more to do with exponential collateral mortgage fraud by Wall Street than the bad loans they made…The bad loans were just more treasuries and bonds….. debt to oversell interests in to investors…they didn’t give a damn about the ability to repay those loans, they just wanted more poker chips in the form of homeowners signatures to gamble with…After the GSE’s cashed that note which was really a check at the Federal Reserve…approved by the U.S. TREASURY they sold that treasury up on Wall Street and interests in that bond to their biggest shareholder…THE IMF……..The note was a check the homeowner wrote to them….and then they sold that note to Wall Street and Wall Street converted that note into a stock……there is no converting a stock back to a check…and once they sold that note to Wall Street they had to destroy that original check….THE NOTE…You are in reality trying to make an argument that someone is owed this money….and that someone is the U.S. TAXPAYER… you are really pleading an excuse for the biggest robbery of our wealth by the ruling elite in history……these financial institutions never lent us any money….truth is WALL STREET was allowed to run the U.S. TAXPAYERS CREDIT CARD UP TO 600 TRILLION IN COLLATERAL MORTGAGE FRAUD BACKED BY ZERO… …And they got massively wealthy from that fraud….They are all criminals and need to be held accountable..Those bonds the GSE’s hold are worthless….backed by ZERO….they are stealing homes from people they have no legal right to take to pay their massive debt that they created that is UNSUSTAINABLE…BACKED BY ZERO……

    • leapfrog says:

      The crowd here just doesn’t buy the old “we’re all in this together” or “we’re all to blame” mantra that Wall Street is trying to sell. We aren’t the ones who came up with derivatives, squared, cubed and all that other crap. We aren’t the ones who came up with MERS. We aren’t the ones who didn’t perform DUE DILIGENCE and gave anyone with a pulse a loan. We aren’t the ones who intentionally and willfully plotted to destroy the economy by sending lobbyists to rewrite rules and regulations that were better left in place (like Glass-Steagall). We aren’t the ones who came up with absolute stinker bills like The Commodities Futures Modernization Act, Gramm-Leach Blilely or the toothless Dodd-Frank. We aren’t the ones who then came crying to the Fed for TARP, ZIRP, 16 trillion in secret loans and discount windows (per GAO audit), and now want to pawn off 250 trillion in toxic derivatives exposure onto the taxpayers. We aren’t the ones who awarded ourselves lavish CEO bonuses with taxpayer funds for an absolutely incompetent job not well done. We aren’t the ones who lied to regulators or paid them off to look the other way or helped shred documents (Mary Shapiro, John Walsh). In my opinion, Wall Street should be be apportioned 75% of the blame in this whole toxic housing blowup. They designed this whole control fraud, yet they remain virtually unscathed. The other 20% goes to “regulators” and corrupt government officials, including the quasigovernment Federal Reserve. The remaining 5% can be apportioned to appraisers, real estate agents, speculators and buyers. Just my 2 cents.

      • CaitlinO. says:

        That’s the best apportioning of guilt I’ve seen. No group has totally clean hands in this debacle, but the filthiest are definitely those in proximity to the fuggin’ brass bull.

  16. Mark says:

    Bloomberg is either an idiot or he is on the banks payroll. Maybe both.

  17. xxxx says:

    oh oh but but but wait there is MORE….the bank own congress …you said what ????
    can you please repeat the BS and you think I am going to believe this sounds even more absurd the second time around
    no no no u r dead wrong
    go stuff your pockets bloomberg
    but be careful be very careful as your brains are being pushed to the limits due to the stuffing factor from the bottom up oh paleezeee geezie some people’s kids with no brains …what kind of psychotropics is he on ? truly ???

  18. Lone Patriot says:

    For once Bloomberg is exactly right. Wouldn’t have a mortgage crisis if bad mortgages didn’t exist in the first place, and the availability of said mortgages pushed up prices of homes so high that homes were essentially unafforable for the majority of the population relative to wages. We need to stay foreclosures and force workouts between banks and lenders at price levels that are affordable relative to wage growth over the period that lending exploded in reaction to these policies. Evicting homeowners makes no sense becuase there is no demand for their houses anyway. Might as well force a workout, keep people in their homes, banks take a haircut, and we stop this absurd notion that everyone deserves a low interest loan to buy a home. I rent because I cannot afford to buy. It isn’t so bad.

    • Lone Patriot says:

      Just to be clear, I’m not suggesting the banks were innocent. They never should have gone along with the policy when the economics of the loans never made sense. Unfortunately mortgage bankers across the country got rich originating these things, taking a fee, and dumping them on someone else, and this chained all the way up through Wall Street and ultimately landed in investors laps. It wasn’t just the Wall Street banks in New York that ****ed up. Goldman Sachs wasn’t out there originating home loans in Kansas. Take the fight to the local banks too. That is where the problem began. These people were enriched by this disgusting zero accountability loan origination during the good years. A lot of these local banks also got TARP money and not a single dime of it has been returned from some of them. If you can’t participate in OWS movement in a major city, find a bank in your own town and I guarantee they were playing the same game. You may even have friends and family that were enriched as a result of it.

      • leapfrog says:

        TARP is really insignificant compared to the 16 trillion to the Too Big To Fails found on the GAO audit of the Fed or the 75 trillion in derivatives that the taxpayers are now being expected to “mop up”. I’m not so upset that a little bank maybe didn’t repay the TARP, but I am bent out of shape that the Too Big To Fails lied and said they paid it back, when they didn’t. They juggled their monies, took advantage of discount windows and fudged their books and gave the appearance of paying TARP back. I find it much more offensive that Too Big to Fail keeps getting repeated bailouts. Since the banksters own CONgress and The Fed, we can rest assured that more bailouts are on the way. I think the key to this whole thing is to take out the banksters, but a corrupt administration, crony Congress and captured regulators will stall all efforts. I’d like to see meaningful investigations, prosecutions, perp walks, incarcerations and restitution on all fronts; banksters and their pals who enabled them.

      • Readdocs says:

        Lone Patiot

        Here’s where all the stench originates from. Right there…the smoking gun. There’s
        no innocent on either side of this scenario….and all should be investigated, and
        prosecuted to the fullest extent of the law.

      • lvent says:

        It does all begin with the politicians who allowed Wall Street to commit the crimes by removing the protections that were put in place to prevent another Great Depression.. Reagan deregulated the banks in the early 80’s and in 1988 we had the S&L crisis…Glass-Steagall was repealed by Clinton in 1999, CNBC reported over a year ago that WALL STREET made 60 trillion dollars off of mortgage derivatives in that year..CNBC reported the stock market was intentionally crashed by insider trading in 2008..The SEC was the culprit who repealed the UPTICK RULE for short selling on July 6, 2007….financial experts have traced the rise in volatility in U.S. stocks to coincide with mid July, 2007…..that allowed insider trading which allowed the intentional crash of the stock market in 2008…..See you tube video entitled Illuminati crashes stock market…and the so called flash crash in 2010..also algorhitmic trading practices insure rigged markets….and market volatility can occur at any time their NWO owners want…

  19. leapfrog says:

    Time once again for the lady who advertises “Smells Like BS” spray. I’m SO SICK and TIRED of the old hairy chestnut that the banksters are innocent in this crisis and its ALL the fault of CONgress. Smells like BS, indeed!

  20. housemanrob says:

    Fuckin’ child molestor!

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