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Banks Warned to Guard Against Rate-Rise Risks

Saturday, January 9, 2010 - 2:47 PM
From Bloomberg: U.S. Warns Banks to Guard Against Rate-Rise Risks:
U.S. regulators including the Federal Reserve warned banks to guard against possible losses from an end to low interest rates and reduce risk or raise capital if needed.
I had recently mentioned a FDIC press release on this. Banks can get burned if rates shoot up. However, there are no expectations for rate hikes in the near term. From the article:
Economists in the survey see the target overnight interbank rate rising a quarter-point to 0.50 percent in the first increase and more than doubling to 1.25 percent by the first quarter of 2011.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634