Bank regulators: 'Asleep at the switch'

March 4, 2008
Bank regulators: 'Asleep at the switch'

NEW YORK (CNNMoney.com) -- Lawmakers grilled bank regulators Tuesday about why they didn't intervene as lax lending standards led to a meltdown in the mortgage market and a credit crunch that threaten the economy.

"Again and again the question has been asked over the past year as our credit markets have grown increasingly impaired: Where were the regulators?," said Sen. Christopher Dodd, D-Conn., chairman of the banking committee. "Why didn't they do more? Were they asleep at the switch? And when the alarm went off, did they merely hit the snooze button?"