Sunday, May 25, 2008

Mortgage recovery would be aided by stronger banking regulations

Fed Governor Randall Kroszner has commented that slowly the mortgage market will recover & the main key factor to the recovery will be better risk management.

Kroszner asked banks to take measures to limit the present foreclosure crisis, with less complexity in instruments of credit & greater transparency. According to him partial blame has to borne by investors who got attracted to these structured securities but had no knowledge of underlying risk profiles.

He said that -

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