Critics of the new guidelines are accusing the U.S. government of prolonging the financial crisis by pushing back a confrontation with lenders that, the critics claim, is inevitable. The response from regulators is that they are being prudent, and that any misinterpretation of the new guidelines as an opportunity for leniency will be rapidly dealt with.
Under the new guidelines, banks can divide troubled loans into two parts: performing and nonperforming, allowing the bank to only incur losses on the nonperforming part and not the loan in its entirety.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
