A Conduit of Mostly Non Mainstream News / Information – without Political Correctness…
Wall Street is cooking up another crisis—making shoddy loans and selling worthless securities to investors hungry for higher yields than CDs and government bonds offer.
Dodd-Frank banking reforms imposed very costly regulations on mortgage and commercial lending. Regional banks, which have solid knowledge of smaller businesses, could not bear these costs and sold out to large Wall Street institutions. Now a handful of money center banks control more than half the deposits and lendable money.
Although big banks have branches everywhere and are flush with funds, they don’t know much about which businesses are likely to repay what they borrow.
Banks aren’t carrying many mortgages on their books—they are merely conduits for Fannie Mae—but business loans have recovered to pre-financial crisis levels. And the bank examiners at the Office of the Comptroller of the Currency, the FDIC, and Federal Reserve are alarmed about their lending standards.