Claim: Hillary Clinton Says she "called for addressing risks of derivatives, cracking down on subprime mortgages and improving financial oversight" early on in the financial crisis.
Verdict: SUPPORTS

Retrieved passages:
title: Political positions of Hillary Clinton
text: percent increases in monthly payments due to the effects of the crisis and of unwise initial borrowing decisions. In late 2008, Clinton voted for the Troubled Asset Relief Program which provided $350 million to purchase toxic assets and equity from financial institutions to strengthen the financial sector during the subprime mortgage crisis. Clinton claimed during a nationally televised townhall meeting in February 2016 that "You are three times more likely to be able to get a mortgage if you're a white applicant than if you're black or Hispanic, even if you have the same credentials." PolitiFact rated this claim "false,"

title: Political positions of Hillary Clinton
text: proposed to cap the expenses that a household spends on child care by at 10 percent of a household's income. Clinton intended to accomplish the 10 percent cap with tax credits and subsidized child care. Clinton called for more robust financial regulation early on in the financial crisis of 2007–08. Clinton specifically called for regulations to crack down on financial derivatives and subprime mortgages and strengthen oversight of financial institutions and private-equity markets. In a 2007 speech, Clinton "called for major federal intervention in the market for subprime loans, arguing that 'we need to acknowledge that Wall Street has played

title: Emergency Economic Stabilization Act of 2008
text: piece, Senator Hillary Clinton advocated addressing the rate of mortgage defaults and foreclosures that ignited this crisis, not just bailing out Wall Street firms: "If we do not take action to address the crisis facing borrowers, we'll never solve the crisis facing lenders." She proposed a new Home Owners' Loan Corporation (HOLC), similar to that used after the Depression and which was launched in 1933. The new HOLC was to administer a national program to help homeowners refinance their mortgages. She also called for a moratorium on foreclosures and freezing of rate hikes in adjustable-rate mortgages. Barack Obama, the Democratic

title: United States Senate career of Hillary Clinton
text: presidential campaign three weeks earlier. As the Financial crisis of 2007–2008 reached a peak with the liquidity crisis of September 2008, Clinton proposed a revival of the New Deal-era Home Owners' Loan Corporation, to help homeowners refinance their mortgages. Writing in a "Wall Street Journal" op-ed, she said that "This is a sink-or-swim moment for America. We cannot simply catch our breath. We've got to swim for the shores." Regarding the proposed bailout of United States financial system, she initially pronounced the $700 billion rescue plan flawed, but said she would support it. On October 1, 2008, she voted in

title: Political positions of Hillary Clinton
text: (repealed in 1999) that mandated the separation of commercial and investment banks, preferring instead other tools to combat systemic risk, including "a 'risk fee' on the financial institutions with assets over $50 billion, regulations on the 'shadow banking' sector (i.e. hedge funds) and guidelines for prosecuting financial wrongdoing." Clinton has received criticism for her ties with Wall Street. Her claim in April 2016 that "I'm the only candidate in the Democratic primary, or actually on either side, who Wall Street financiers and hedge fund managers are actually running ads against," received a "Pants on Fire" rating from "PolitiFact". The fact

title: Hillary Clinton 2016 presidential campaign
text: haven't had that, and so don't understand the value of a core, in this sense a Common Core." In a December 7, 2015 "The New York Times" article, Clinton presented her detailed plans for regulating Wall Street financial activities and related. She proposes reining in the largest institutions to limit risky behavior, appointing strong regulators, and holding executives accountable. Clinton is in favor of maintaining American influence in the Middle East. She opposes Trump's call to ban Muslims from the United States as "shameful" and "dangerous". She also claimed Trump's statement was "a reflection of much of the rest of

title: Subprime mortgage crisis solutions debate
text: the American Enterprise Institute, a former Wall Street lawyer, Republican political figure, and longtime advocate of financial deregulation and privatization. President Barack Obama and key advisors introduced a series of regulatory proposals in June 2009. The proposals address consumer protection, executive pay, bank financial cushions or capital requirements, expanded regulation of the shadow banking system and derivatives, and enhanced authority for the Federal Reserve to safely wind-down systemically important institutions, among others. The purpose of a systemic risk regulator would be to address the failure of any entity of sufficient scale that a disorderly failure would threaten the financial system.

title: Political positions of Hillary Clinton
text: a significant role in our current problems, and in particular the housing crisis.'" Clinton supported the subsequent Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010, a major overhaul of U.S. financial regulations enacted in the wake of the Great Recession. Several key architects and supports of the Dodd-Frank Act, including Barney Frank and Gary Gensler, are Clinton supporters who advise her on financial regulations during her 2016 campaign. Clinton has proposed to impose a tax on types of high-frequency trading that she describes as "harmful". Her official platform says, "In particular, the tax would hit HFT strategies involving

title: Political positions of Hillary Clinton
text: excessive levels of order cancellations, which make our markets less stable and less fair." On December 7, 2015, in a "New York Times" op-ed, Clinton outlined her plans for regulating Wall Street. Clinton wrote: "As president, I would not only veto any legislation that would weaken financial reform, but I would also fight for tough new rules, stronger enforcement and more accountability that go well beyond Dodd-Frank." Clinton also called for an enhanced Volcker rule that would close "loopholes that still allow banks to make speculative gambles with taxpayer-backed deposits." Clinton does not support reinstating the Glass-Steagall Act, a law

title: Wall Street reform
text: to the 2008 crash, and fines imposed on the banks have been only a fraction of the banks' potential gains. In addition, the banks and their lobbyists have succeeded in watering down the Dodd-Frank reform legislation, and the financial institutions that pose the greatest risk to our economy have still not devised sufficient "living wills" for winding down their operations in the event of another crisis. Secretary Hillary Clinton's more modest proposals do not go far enough. They call for a bit more oversight and a few new charges on shadow banking activity, but they leave intact the titanic financial

title: Political positions of Hillary Clinton
text: be permitted to apply for forgiveness of up to $17,500 of their debt after five years. On December 5, 2007, Clinton unveiled her plan to ameliorate the effects of the 2007 subprime mortgage financial crisis on homeowners. She called for a 90-day moratorium on foreclosures, in order that lenders and mortgage servicers have sufficient time to get through paperwork complications and an expected high volume of troubled borrowers without having to shut out the lights, and a five-year freeze on the interest rates of adjustable rate mortgages, so that borrowers would not get slammed by expected 30, 40 or more

title: Economic policy of the Bill Clinton administration
text: have "anything to do with the financial crash [of 2008]" as "Mostly True," with the caveat that his claim focused on removing the separation of investment and depository banking and not the broader exclusion of risky financial instruments (derivatives) from regulation. These derivatives, such as the credit default swaps at the core of the 2008 crisis, were basically used to insure mortgage-related securities, with AIG the major provider. This encouraged more mortgage-related lending, as AIG theoretically stood behind the mortgage securities used to finance the mortgage lending. However, AIG was not effectively regulated and did not have the financial resources

title: Government policies and the subprime mortgage crisis
text: repeal the "culmination of a $300 million lobbying effort by the banking and financial services industries..." He believes it contributed to this crisis because the risk-taking culture of investment banking dominated the more risk-averse commercial banking culture, leading to increased levels of risk-taking and leverage during the boom period. "Alice M. Rivlin, who served as a deputy director of the Office of Management and Budget under Bill Clinton, said that GLB was a necessary piece of legislation because the separation of investment and commercial banking 'wasn't working very well.'" Bill Clinton stated (in 2008): "I don't see that signing that

title: Julian Assange
text: paid Goldman Sachs speech in 2013. In the emails, she explained her relationship to Wall Street and how she had previously represented the community: "even though I represented [people in finance] and did all I could to make sure they continued to prosper, I called for closing the carried interest loophole and addressing skyrocketing CEO pay. So when I raised early warnings about subprime mortgages and called for regulating derivatives and over complex financial products, I didn't get some big arguments, because people sort of said, no, that makes sense." According to Harvard political scientist Matthew Baum and College of

title: Global financial crisis in September 2008
text: 25, agreement was reported by congressional leaders on the basics of the package; however, general and vocal opposition to the proposal was voiced by the public. On Thursday afternoon at a White House meeting attended by congressional leaders and the presidential candidates, John McCain and Barack Obama, it became clear that there was no congressional consensus, with Republican representatives and the ranking member of the Senate Banking Committee, Richard C. Shelby, strongly opposing the proposal. The alternative advanced by conservative House Republicans was to create a system of mortgage insurance funded by fees on those holding mortgages; as the working

title: Subprime mortgage crisis
text: Clinton Administration, HUD Secretary Andrew Cuomo announced "new regulations to provide $2.4 trillion in mortgages for affordable housing for 28.1 million families, which increased the required percentage of mortgage loans for low- and moderate-income families that finance companies Fannie Mae and Freddie Mac must buy annually from the then current 42 percent of their total purchases to a new high of 50 percent. Eventually (under the Bush Administration) a 56 percent minimum was established. Additionally, in 2003, "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade

title: Presidency of Barack Obama
text: requirements on derivatives (particularly credit default swaps), and took steps to limit systemic risks to the US economy with policies such as higher capital requirements, the creation of the Orderly Liquidation Authority to help wind down large, failing financial institutions, and the creation of the Financial Stability Oversight Council to monitor systemic risks. Dodd-Frank also established the Consumer Financial Protection Bureau, which was charged with protecting consumers against abusive financial practices. On signing the bill, Obama stated that the bill would "empower consumers and investors," "bring the shadowy deals that caused the crisis to the light of day," and "put

title: Subprime mortgage crisis
text: as derivatives. A 2008 investigative article in the "Washington Post" found that leading government officials at the time (Federal Reserve Board Chairman Alan Greenspan, Treasury Secretary Robert Rubin, and SEC Chairman Arthur Levitt) vehemently opposed any regulation of derivatives. In 1998 Brooksley E. Born, head of the Commodity Futures Trading Commission, put forth a policy paper asking for feedback from regulators, lobbyists, legislators on the question of whether derivatives should be reported, sold through a central facility, or whether capital requirements should be required of their buyers. Greenspan, Rubin, and Levitt pressured her to withdraw the paper and Greenspan persuaded

title: Political positions of Hillary Clinton
text: on the 1994 crime bill started to shift in a 1998 column as she picked and chose "from the crime bill's legacy, emphasizing the gun-control measures, prevention programs for juveniles, and funding for more police officers, without mentioning the law's contributions to mass incarceration." During her 2016 presidential campaign, Clinton had proposed a $10 billion plan, much of which would have been funded by the federal government, intended to treat addicts, increase emergency responders' access to a life-saving rescue drug targeting overdoses, and curb incarceration for nonviolent drug offenses. Clinton supports diversion programs such as treatment-focused drug courts, saying in

title: Subprime mortgage crisis solutions debate
text: that might interfere with private recapitalization, such as stringent pay caps, taxes on financial transactions, and the removal of key bank leaders. Geithner acknowledges this strategy is not popular with the public, which wants more draconian reforms and the punishment of bank leaders. President Obama and key advisors introduced a series of longer-term regulatory proposals in June 2009. The proposals address consumer protection, executive pay, bank financial cushions or capital requirements, expanded regulation of the shadow banking system and derivatives, and enhanced authority for the Federal Reserve to safely wind-down systemically important institutions, among others. Geithner testified before Congress on