Bubble Wrap

Fed to Clamp Down on Exotic and Subprime Mortgages

While both the Financial and Housing markets are still rocky, Bernanke said on Tuesday morning that the Fed would issue new lending rules next week to restrict exotic mortgages and high-cost loans for people with weak credit, as reported by The New York Times

“The financial turmoil is ongoing, and our efforts today are concentrated on helping the financial system return to more normal functioning,” Mr. Bernanke said, according to an advance text of his speech issued by the Fed. “It is not too soon, however, to begin to think about the steps we might take to reduce the incidence and severity of future crises.”