After the subprime mortage
market collapsed, it has been a flight to quality," says Crockett.
The subprime mortage
resets peak during the second quarter, coupled with problems at Fannie Mae and Freddie Mac, loom large over economy, iSuppli noted.
The Lehman Brothers foundered after it failed to settle a US$60 billion bill as an after effect of the subprime mortage
crisis that begin in 2007.
DAVOS: Business leaders said yesterday they were aghast at a $7 billion fraud at French bank Societe Generale, which comes just as banks worldwide are reeling from losses inflicted by the subprime mortage
The published guidance on both nontraditional mortgage product risks and subprime mortage
lending, along with comments in recent months from banking regulators including the Federal Reserve, confirm that federal regulators feel the pressure to act aggressively on the subprime lending turmoil.