In prepared testimony before Congress last week, New York Governor Elliot Spitzer acknowledged that losses from the subprime crisis may threaten the U.S. economy. During his presentation, Spitzer pointed out that many were to blame for the subprime problem.
Spitzer complained that inadequate federal regulation of the mortgage markets and of the conversion of subprime mortgages into securities contributed heavily to problems in the U.S. economy. Spitzer pointed out that federal regulators should have been more proactive in dealing with the subprime situation and the abuses that occurred in the subprime market.