RK

Regulators' Misguided Emphasis on Banks' Common Equity Levels

So whose idea it is to focus on this Common Equity Ratio? Congress? Treasury? FDIC? I thought this government is full of smart guys. What happened?

Banks Stressing the System vs. Potential Winners of the TARP Repayment Race

Anecdotally, in my small office, I know of 2 people who failed to refi their mortgages in the last 2 months due to drops in the appraised values of their houses. Conforming loans for under 20% equity are not to be had. Banks are scared to make bad loans (for now). Until housing values begin to stop falling and the mortgage rates come back down to 5%, the residential mortgage market won't lift.