1 minute readMajor US banks temporarily lowered their debt levels just before reporting in the past five quarters, making it appear their balance sheets were less risky, according to data from the Federal Reserve Bank of New York. The Fed said on Friday 18 banks, including Goldman Sachs , Morgan Stanley, JP Morgan Chase, Bank of America and Citigroup, understated the debt levels used to fund securities trades by lowering them an average of 42% at the end of each period. The banks had increased their debt in the middle of successive quarters, it said. Excessive leverage by the banks was one of the causes that led to the global financial crisis in 2008.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
HousingWire Mortgage Rankings have arrived, bringing data-driven benchmark to originator performance
HousingWire on Tuesday announced the launch of the HousingWire Mortgage Rankings, a new performance intelligence product designed to provide a clear, data-driven view of mortgage origination activity across the U.S. The rankings benchmark mortgage originators based on observed production, offering a standardized view of performance across geographies, loan types and channels. Historically, the mortgage industry has lacked […]
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
