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  • Vangsgaard Dillard posted an update 3 years, 3 months ago

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    The business of underwriting and approving mortgage loans is tricky today for sure. However, to go so far as believed he’s competent and banks are not lending money is a far cry from the reality.

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    One year back similar Stress Test was conducted in US for 19 of its banks. Out of 19 US banks, ten banks failed the stress test conducted in May 2009. This estimated that these banks would require an infusion of $75 billion to be credit worthy in case of another depression. That’s stressful. But here you may find concerns of Sovereign Debt Default in European continent there are just seven banks out of 91 tested which broke. Estimated requirement of capital is just $ 4.5 billion to accommodate any rude surprises through economic economic downturn. Isn’t it wee bit striking? It only points to a incontrovertible fact that the tests were not conducted rigorously. The rules applied to test the banks have been lenient. Option only explanation one frequently offer.