Credit Suisse gets another warning over loan underwriting, reports WSJ

Thursday, September 18, 2014

Credit Suisse's loan underwriting standards are coming under review as US regulators clamp down on what they perceive to be risky loans

TAGS: Credit Suisse

Comment by: Anonymous. Posted 9 years ago [2014-09-19 00:13:14]

As I understand it, the Fed is unhappy that Credit Suisse makes loans to borrowers with Debt-to-EBITDA of 6:1 and higher. Let's tell the Fed that banks have much higher leverage. Citi is 50:1 and JPM is 30:1, for example. (Yes, we count deposits as debt because they are debt.) It wasn't HY loans that caused the 2008 Crisis.

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