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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: marek_wojna who wrote (85290)	5/10/2002 11:51:12 AM
From: long-gone	Read Replies (1) \| Respond to of 116820

Friday May 10, 11:47 am Eastern Time Associated Press Greenspan urges banks to rely on risk management to control bad loans By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) -- Federal Reserve Chairman Alan Greenspan said Friday that commercial banks and banking regulators need to rely more on the emerging field of risk management to control loan defaults during periods of economic weakness. ADVERTISEMENT Greenspan said it was only human nature for banks to get overconfident about their lending practices during boom times and then to sharply retreat from making loans when the economy weakens. "To the majority of banks, the environment of contagious optimism makes more and more proposals seem bankable" during times of prosperity, Greenspan said. And on the other side of the ledger, when the economy begins to weaken, banks and their regulators will overreact, he said. In response to questions, Greenspan told his audience at a banking conference in Chicago that the long-term outlook for the economy is "increasingly, persuasively good" even though the short-term prospects for a rebound in business investment are still "rather mixed." Greenspan said the huge increases in Americans' productivity in recent months -- including an 8.6 percent surge in the first quarter -- overstated gains in this important measure of living standards. But he said he is convinced that worker productivity has improved significantly since 1995 after more than two decades of lackluster gains. "Something is going on," Greenspan said. "At a minimum, it is confirming that the shift in growth of the rate of productivity subsequent to 1994 is real." In his remarks to the banking conference, Greenspan said it was natural for bankers to grow more cautious in their lending practices during bad times. "As the economy deteriorates, fewer projects seem attractive as more of the previously extended credits become nonperforming. Cautious voices, including those of the supervisors, become prominent," Greenspan said. To help moderate this boom-bust cycle of banking, Greenspan said banks and their regulators should rely more on risk management in which banks use sophisticated computer models to help them assess the relative risks of their loans. Greenspan stressed that all computer models to assess risk are based on uncertain forecasts about what will happen to the economy. He said this was at the heart of the international effort to come up with new banking standards, known as the Basel Capital Accord. He said this effort, while taking longer than expected, will serve as an important guide that will allow banking regulators in the United States and other countries to make informed judgments about loan risks, especially at the world's largest banks. biz.yahoo.com

To: marek_wojna who wrote (85290)	5/10/2002 9:03:24 PM
From: d:oug	Read Replies (1) \| Respond to of 116820

Yes, I want it, starting with my first issue FREE... Marek, I'am not able to reach this article you reference, which is a shame since its about the only on-topic post on this thread today. For sure all the other manipulation and corruption and criminal activity posted today is part of the whole mess, but gold-price-monitor-wise it's not close enough to any GATA focus, thus too peregrinate. Could you please expand on the following, ... This German Bank has... and note to what degree Gata Bill's Cafe has covered it. thanks doug