Boston Fed President: Banks must dump toxic assets

Banks need to get rid of toxic assets, Boston Federal Reserve Bank President Eric Rosengren told a group of bankers yesterday in Washington.
MAR 03, 2009
Banks need to get rid of toxic assets, Boston Federal Reserve Bank President Eric Rosengren told a group of bankers yesterday in Washington. The banks should eliminate bad loans quickly in order to free up more money for lending, he said at a meeting of the New York-based Institute of International Bankers, The Boston Globe reported. Mr. Rosengren also said that policymakers need to reconsider regulatory and accounting rules because models that banks use to estimate their reserves aren’t forward looking, the newspaper reported. Setting aside money to cover losses and holding on to capital will only prolong recovery from the credit crunch, he said.

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income