Bank Regulator Warns Against Loan Standards Slide

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00005903-bank-regulator-warns-against-loan-standar/

Rumors of a healthy looking bank sector may be exaggerated. In a Reuters article published yesterday, many U.S. banks are allowing their loan standards to slide in a bid to maintain profits and high loan volumes ? at least according to the Office of Thrift Supervision.

In remarks to be delivered at a New York Bankers Association forum, John Reich, director of the Office of Thrift Supervision, says that some institutions are buying portions of loans without complete documentation. This obscuring of potential bad debt could prove fiscally problematic later.

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