Sheila Bair: Lender Risk Aversion to ‘Inevitably Decline’

Risk aversion by lenders and investors has helped strengthen underwriting standards so far, but that aversion will “inevitably” fade going forward, FDIC Chair Sheila Bair said Thursday. And when this happens, regulators must “ensure that lending standards do not revert to the risky practices that led to the last crisis,” she told the Senate Banking Committee during a hearing. – iMarketNews

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