To: tejek who wrote (145677 ) 9/10/2014 12:12:04 PM From: pcstel Read Replies (1) | Respond to <First of all the link doesn't work...............again.< Not my link. < No one was watching the banks.........that's why they were able to pull the stunts they pulled. < Again, the banks were pressured, via Government Regulation signed under the Carter Administration to provide loosened lending requirements. The Banks competed against the GSE's for loan volumes, and origination's. When the Banks see the GSE's of Freddie and Fannie competing vigorously in the Sub Prime Market, then perhaps they view that as affirmation of the validity of the market. After all, Freddie and Fannie are doing it. A few banks called their bluff and largely elected to step aside of the sub-prime markets... Like US Bank.. A few banks, however, appear well-equipped to weather the crisis, and prominent among them is U.S. Bank. The company's financials remain fundamentally sound, in large part because its home mortgage group maintained conservative lending practices when many of its competitors were trying risky strategies to cash in on the housing boom. While other banks have struggled to stay in business in an environment of low consumer confidence and reduced consumer spending, U.S. Bank has been able to sustain trust among its current and potential customers. It was one of two banks able to increase its loans in the fourth quarter of last year; moreover, new deposits flooded in during that time as customers turned to a bank they viewed as secure. Those perceptions weren't unfounded: in February, Global Finance magazine named U.S. Bank as one of the world's 50 safest banks, based on total assets and long-term credit ratings. "Our future is very bright," says Dan Arrigoni, president of U.S. Bank Home Mortgage. "With all the turmoil, there has been much consolidation and a thinning of competitors. We've benefitted from our reputation for quality, and our volume is projected to increase significantly."
