Credit ratings and risk weightings must undergo a thorough process of review and revision. No security or instrument on the planet should have a zero risk weighting.
Sentiment: NEGATIVE
A person's credit report is one of the most important tools consumers can use to maintain their financial security and credit rating, but for so long many did not know how to obtain one, or what to do with the information it provided.
An institution that borrows on a non-prioritized basis would never contemplate borrowing on a prioritized basis. Doing so would undermine its standing in the bond market and suggest that it is not worthy of its strong credit rating. This type of self-imposed downgrade would materially affect its financial prospects.
You want banks to take some risk, but intelligent risk.
Any investment bought via credit always runs the risk of margin calls and, eventually, liquidation.
We have new rules that give shareholders the ability to vote on executive compensation. We have new rules for asset-backed securities. We have new rules around credit rating agencies.
The credit reporting system suffers from inaccuracy and often from outright injustice.
For years, critics of Fannie Mae have warned that it does not give them enough information to judge its risks.
'Credit' is another word for trustworthiness.
Credit is an 'I love debt' score.
Without exposure to potential failure, there is no risk.