Ironically prior monetary and fiscal actions helped

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Unformatted text preview: abilizes them by reducing the profits banks can earn through yield spreads. Banks will face challenges rebuilding their balance sheets the longer Operation Twist continues. Banks will take a number of measures to pursue profits, including pricing products higher than the government’s lower manipulated rates intend, selling off less profitable loans net of retention in the securitization markets, taking on greater loan underwriting risk, and other diversified nontraditional revenue streams like insurance and investment brokerage. Despite Treasury Secretary Geithner’s assurance that Europe would not have a major bank failure, rumors and news of this evolving debt rescue plan weighed on U.S. banks and their potential exposure to toxic debt. The EU has been strained to provide a united response among its 17 members that share a common currency but maintain vastly different fiscal policies, budgets, and debt. The second quarter 2011 FDIC Quarterly Banking Profile reported the following national banking industry results: ...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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