She just showed how little she actually knows.
Recently, Rep. Maxine Waters (D-Calif.) tried her absolute hardest to bash a group of CEOs of large banks during a House Financial Services Committee hearing, but to her surprise she ended up doing the complete opposite.
During the hearing, Waters cited numbers showing increases in student loan debt. In many cases the debt has become truly unmanageable for the borrowers. She asked the CEO’s what they had planned to do about the problem.
“Who would like to answer first? Mr. Monahan, big bank?” Waters said to the Bank of America CEO.
“We stopped making student loans in 2007 or so,” BoA CEO Brian Monahan replied.
Waters went down the line, “Mr. Corbat?” she said to Citigroup CEO Michael Corbat.
“We exited student lending in 2009,” Corbat responded.
Waters hasn’t caught on and went to ask J.P. Morgan CEO Jamie Dimon the same question. Dimon finally explained the situation to her.
“When the government took over student lending in 2010 or so, we stopped doing all student lending,” Dimon told Waters.
knowing her embarrassing mistake, Waters quickly moved to the next topic.
Waters should have known before 2010, private banks issued federally-guaranteed student loans that were backed by the government (read: taxpayers) if they weren’t repaid.
Starting in 2010, the Obama administration thought it best to cut out the middle man, so to speak, by having the federal government issue all loans directly.