Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Real Man who wrote (95234)	4/17/2001 1:44:32 PM
From: patron_anejo_por_favor	Read Replies (2) of 436258

My theory is that all the coupon passes we're seeing are being done to enable the banksters to increase their loan loss reserves without draining liquidity. There is one constant theme in the bank's quarterly reports, and that is that loan loss reserves are rising (see ONE's report today, and C and BAC yesterday). Reserves will need to be up for some time yet (to say the least!) so the coupon pass mechanism is necessary. Inflationary? Sure, and it also delays the inevitable need to recognize and write down bad loans (by making it relatively painless for the banksters to avoid it, and continue with business as usual). All MHO.

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