Another Gross error.
Posted on February 01, 2012 at 13:50 PM EST
Another Gross error. Bank’s aren’t allowed to take what’s called ‘interest rate risk’ by borrowing short and lending long. It’s the first thing the regulators and supervisors look for. It’s the S in CAMELS ratings- Capital, Asset quality, Management, Earnings, Liquidity, and Sensitivity to interest rates. Fed’s Low Rates Killing Credit, Slowing Recovery: Gross By [...]

Another Gross error.
Bank’s aren’t allowed to take what’s called ‘interest rate risk’ by borrowing short and lending long.
It’s the first thing the regulators and supervisors look for.
It’s the S in CAMELS ratings- Capital, Asset quality, Management, Earnings, Liquidity, and Sensitivity to interest rates.

Fed’s Low Rates Killing Credit, Slowing Recovery: Gross

By Jeff Cox

Feb 1 (CNBC) — The Federal Reserve’s zero-interest-rate policy is hampering economic recovery by discouraging bank lending, Pimco bond titan Bill Gross said in an analysis.

For banks, a healthy lending environment exists where they can borrow at low rates in the short term and lend at significantly higher rates over the long term, a situation that creates a profit through a positively sloped yield curve

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Mortgage Rates, CD Rates & Home Equity Rates provided by Banks.com
Press Release Service provided by PRConnect.
Fundamental data supplied by Morningstar
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here