NPR Nails Perps in Subprime Crisis: Leaves Out Media

NPR had a very good piece this morning detailing how investment banks accepted and passed on mortgage loans that they knew to be bad. According to its report, one investment bank had a contract with New Century, a leading issuer of subprime mortgages, that it would reject no more than 2.5 percent of its loans. Of course, such a contract would be an invitation to submit bad loans.

At the end, the report presents the assessment of the investment banks' actions by Adam Davidson, NPR's economic correspondent. Mr Davidson said that the investment banks bear responsibility for the mortgage crisis, but so do many other parties up and down the chain, including the home buyers and the mortgage issuers.