liorio1

Bernanke's Plan Could Work

Community/Regional banks will probably go along with this notion as they have roots in their community and that is where their bread and butter is in the long run. On the other hand, "big banks", by their nature, probably will not unless there is a legal directive to do so by the Fed or state regulator. Several reasons for this: bureaucratic inertia, complexity of the portfolio (eg what has already been reserved for - done only on a category basis) and greed (stupidity?) - A monumental bailout, which is already underway with lower interest rates set by the Fed, who else besides the banks are benefitting from them? The sub-prime borrowers? Check the refi fates.