U.S. Policy Responsible for Crisis, Bank of China’s Xiao Writes

U.S. policy makers should “shoulder their responsibilities” for measures that promoted the “excessive” pursuit of homeownership, distorted the housing market and became a main cause of the financial crisis, Bank of China Ltd. Chairman Xiao Gang wrote in a commentary published in today’s China Daily newspaper.

Chasing this “American dream” encouraged financial institutions to misallocate too much capital and credit to the housing markets, Xiao wrote.