Designed government subprime and Bush growth initiative

Attorney’s General and others are piling on as they focus on Countrywide in the subprime debacle. Countrywide was not the only lender involved. Some insiders at HSBC claim HSBC (HSBC Finance) was just as bad. There’s no question that Countrywide made billions in high-cost loans to risky borrowers that have ended up in foreclosure. But …

Hedge funds face examination

Hedge funds may also face scrutiny. Routine SEC inspections during the subprime crisis have uncovered cases in which investment advisers, including hedge funds, didn’t live up to pledges to implement risk controls, a person familiar with the findings said. Lapses include failures to vigilantly track asset values, cap leverage and avoid concentrating bets. “We’ve had …