Financial reform forces Goldman's Richard Ramsden to turn pessimistic on banks' earnings, and he...

|By:, SA News Editor

Financial reform forces Goldman's Richard Ramsden to turn pessimistic on banks' earnings, and he says customers will pay the price via added fees and higher spreads on lending, including mortgages. "Conforming mortgage rates are currently 90bps above MBS yields vs. a historical average of 20bps, [implying] that banks are not passing on the full benefit of low rates and the Fed MBS purchase program."