Greenspan had no notion of subprime mortgage significane

Former Federal Reserve Chairman, Alan Greenspan, acknowledged in a recent interview that he was unaware of the impact subprime lending practices would cause. Greenspan told CBS “60 Minutes” that

“While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late, I really didn’t get it until very late in 2005 and 2006.”

The subprime mortgage market has led to over 100 subprime lenders going out of business and had a significant impact on Wall Street. Greenspan left this credit crisis in the hands of his sucessor, Ben Bernanke.