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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.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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