Another Gross error.
Another Gross error. Bank’s aren’t allowed to take what’s called ‘interest rate risk’ by borrowing short and lending long. It’s the first thing the regulators and supervisors look for. It’s the S in CAMELS ratings- Capital, Asset quality, Management, Earnings, Liquidity, and Sensitivity to interest rates. Fed’s Low Rates Killing Credit, Slowing Recovery: Gross By [...]