In the years leading up to the 2008 financial crisis, he was an enthusiastic cheerleader for credit default swaps and complex securitizations. He dismissed repeated and increasingly urgent concerns from housing advocates across the country regarding subprime mortgages. He refused to use the Fed's authorities to address the risks that were building in the financial system. And when the crisis hit and the economy blew up, Warsh took on the job of Wall Street's personal liaison on the Fed board. (03:17–03:25)
CLAIM
Asserts that Warsh did not act on financial risks before the crisis.
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