c. myblog

August 5, 2011

U.S. Debt Downgrade?

Six days before the deadline to raise the national debt limit, 30 of 53 economists surveyed by Reuters news service believed the United States will lose its AAA debt rating in the near future.  Some would argue that kind of action is overdue with the national debt standing at about $14.5 trillion and growing.  However, […]

July 20, 2011

Back In The Subprime Game

In a recent issue of the Wall Street Journal, Lewis Ranieri—once known as the father of mortgage finance—said it is time for nontraditional lenders to enter the market, bringing with them a return to subprime lending.  Ranieri said “the pendulum has swung too far in the other direction,” meaning that lending standards were once too […]

May 6, 2011

Planning For PLL

Given the economic experience of the past couple of years, many credit unions were forced to beef up their loan loss reserves.  Now, as things appear to be getting better, we are seeing that some credit unions feel they are “overfunded” and are not adding to their reserves.  While this may provide some temporary relief […]

March 31, 2011

Lower Earnings Or Increased Interest Rate Risk?

If there is one thing to be said infallibly about risk management, it is never black and white.  The historically-low rate environment coupled with mostly-anemic consumer loan demand has put increased pressure on credit union margins across the nation; moreover, many are reaching their floor with regard to lowering deposit rates.  In light of the […]

March 17, 2011

Caps On Debit Cards?

A recent article from CNNMoney.com reported that JP Morgan Chase is proposing a cap of $50 (or $100) on individual debit card transactions in an effort to boost transaction volume.  Not surprisingly, they attribute the proposal to the pending changes in rates on interchange income.  Chase claims that debit cards will not be profitable for […]

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