As the banks are having so many problems in the US with people not making the payments on loans, how much sense does it make to liquidate those who have not missed any payments and do not look like doing it? Sure the standard rulebooks say... but these are not standard times and tough times call for different tactics. Being Mr Mean and trashing anyone who does not meet the good times standards and forcing a lot of property onto a slow market will have consequences- lower prices and quite possibly losses on loans which will come straight off the banks own bottom line. This has cascading consequences. With the high leverage banks normally have for every dollar lost off capital, to take about 20 dollars off their loan book. There is aminimum limit big banks can go to in terms of leverage. The Bank of International Settlements in Switzerlansd has rules on this for banks to be allowed to particiupate in the international cheque settlement system. If I was a bank head I would be acting very carefully and not exacerbating the situation. If the client is making the payments it aint busted. Dont fix it.
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
