The worst actors in the financial crisis worked in this shady world involving the creation of subprime-backed securities.
Of those bad actors, there is a subset of still-worse actors, who not only sold these toxic investments to institutional investors like pension funds and Fannie and Freddie, but helped get a generation of home borrowers – often minorities and the poor – into deadly mortgages that ended up wiping out their equity.
Phillips, who helped Fannie and Freddie into substantial losses and worked with predatory firms like New Century, belongs in this second category. As Beavis and Butthead would put it, Phillips comes from the « ass of the ass. »
Donald Trump, then, has essentially picked one of the last people on earth who should be allowed to help reshape the mortgage markets. This is like putting a guy who sold thousand-dollar magazine subscriptions to your grandmother on the telephone in charge of the Consumer Financial Protection Bureau, or the A.A.R.P.
More foxes for more henhouses. Welcome to the Trump era.