Schwarzenegger vetoes subprime mortgage reform bill

Assembly Bill 1830 would have barred brokers and lenders from making false statements and steering borrowers to high-cost loans.

He vetoed it because it only applies to state entities, not federal. Thus, not being able to make false statements would have put state companies at a competitive disadvantage.

I can’t think of a clearer example of how hopelessly compromised, corrupt, and amoral our financial system is than this veto of a bill because being honest puts you at a disadvantage.

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