Whoa Nelly... Take a peek into the FTC archives. Subprime mortgage lending was a disaster in the 1990's too...
Precisely one decade before JP Morgan announced an agreement to buy Bear Stearns for $2 per share (later increased to $10 per share), the FTC heard and adopted testimony on abusive subprime lending practices.
That's right, 10 years to the day before Bear Stearns collapsed, the FTC highlighted serious problems in the subprime lending industry.
Two subprime abuses the FTC described way back in March 1998:
1990's SUBPRIME LENDERS FREQUENTLY BASED UNDERWRITING DECISIONS ON HOME EQUITY RATHER THAN ABILITY TO REPAY
SUBPRIME LENDERS IN THE 1990'S CONVINCED BORROWERS TO REFINANCE AGAIN AND AGAIN.
MARCH 16, 1998; FTC PRESS RELEASE ON ABUSIVE PRACTICES IN SUBPRIME LENDING
*FTC Testifies On Enforcement And Education Initiatives To Combat Abusive Lending Practices
"Subprime lending refers to the extension of high interest rates or higher fee loans to higher risk borrowers."