Fed Study: 96 CRA Reforms Had No Impact on Bank LMI Lending, Subprime Crisis
As banks take on the new CRA rule in the courts (see FSM Report CRA32), a new Fed study suggests that prior CRA changes had no meaningful impact on LMI mortgage lending in assessment areas and did not cause the subprime crisis as a prior study asserted.
NYCB’s Prospects, Policy and Political Consequences
After the markets closed, NYCB was up a bit from its lows, but it remains to be seen if this is a “dead-cat bounce” or stabilization. Regardless, the company’s market capitalization is down 57 percent since it surprised markets with unexpectedly-bad results.