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Wednesday, May 02, 2007

When was the last time the feds ordered the privately-owned banks to rewrite loans?

Never—that's when.


the Federal Reserve and the five other federal agencies that regulate banks issued this statement just last week:

"Prudent workout arrangements that are consistent with safe and sound lending practices are generally in the long-term best interest of both the financial institution and the borrower…Institutions will not face regulatory penalties if they pursue reasonable workout arrangements with borrowers."

Heebner: “The Greatest Price Decline in Housing since the Great Depression” (Bloomberg News interview)

“the bubble was caused by creative housing finance made possible by the emergence of a deregulated global credit market through finance liberalization. The low cost of mortgages lifted all US house prices beyond levels sustainable by household income in otherwise disaggregated markets”

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