Newspaper wrap-up: Federal regulators have National City under scrutiny
Posted Jun 6th 2008 8:00AM by Laurie Pasternack
Filed under: Newspapers, Magazines, General Motors (GM), Amer Intl Group (AIG), Lehman Br Holdings (LEH), Tata Mtrs Ltd (TTM)
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MAJOR PAPERS:
- The banking unit of National City Corporation (NYSE: NCC) recently entered into a "memorandum of understanding" with federal regulators, the Wall Street Journal reported. The banking unit has bad loans, and the agreement basically means that the bank is on probation, as the government pressures financial institutions.
- The Wall Street Journal also reported that Justice Department criminal prosecutors and its U.S. attorney's office in Brooklyn, NY are investigating American International Group Inc (NYSE: AIG) to see if they overstated the value of contracts tied to subprime mortgages.
OTHER PAPERS:
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Reader Comments (Page 1 of 1)
6-06-2008 @ 9:40AM
B. Harrison said...
As I recall, there are rather strict requirements by the FCIC for the banks about "reserves" and bad debt ratios, etc.
So, how is all of this being maintained and complied with when the Banks have to disclose the massive amount of bad debts. This is another reason that the government should have had basic regulations in place for requiring that all mortgage loan applicants were fully capable of repaying the loans BEFORE they issued the loans.
Regulations are meaningless without enforcement. Is the massive bad debts of the banks threatening the integrity of the FCIC "insurance" programs? Doesn't that even further undermine the integrity of the market?
6-08-2008 @ 10:12AM
Audrey said...
Earlier this year approximately 6 mos. or so ago National City gave us a home equity line of credit of approximately 86,000.00. Appraiser came to our home and valued the price. When we reached approximately 30,000.00 left on our equity line, National City shut our line down after they told us that a new appraisal (one of their choosing) if it came in at same value they would reopen our line of credit. Had appraiser down and numbers conveniently came down from 515,000.00 to 442,000.00 an evaluation much lower which gave them the ultimate power of closing our line. Appraisal cost us 350.00 and now we are stuck owing 57,000.00 and cannot use the remaining 30,000.00 or so. Please help they are robbing us. By the way, our house is in New York where home prices are much higher than elsewhere - Audrey and Arthur Kaplan