More than $125 billion emergency federal aid has been invested into the firms by Treasury to cover their losses.
In 2000, there were Clinton administration and Congressional efforts to make housing more affordable to minorities and the disadvantaged by purchasing more subprime mortgage securities.
He said obviously that fewer subprime assets would have removed "a substantial weight," from the companies' portfolios, saving massive losses to the firm and collapsing the housing market.
With falling interest rates in 2003 and 2004 Greenspan said "a significant portion of the increased demand for subprime mortgage-backed securities during the years 2003 and 2004 was effectively politically mandated," he said. Because of those mandates the subprime market grew quickly and standards deteriorated rapidly.