Fritz Elmendorf
Fritz Elmendorf
banks counteract evolved large sources various
Banks have various sources of earnings. If a bank is large enough to have international operations, it has evolved enough diversification to counteract those losses.
actions banks borrow change cheapest currently directly equity home lines offer percent prime rates related
Any change in rates on home equity lines is directly related to the actions of the Fed. On average, their rates are 1 percent over the prime rate, but some banks even offer home equity lines at the prime. Home equity lines are probably the cheapest way that homeowners can currently borrow money.
account almost among banks broad checking credit customers regardless relationships service trend turn
The broad trend among banks is to service customers almost regardless of their credit standing. They do not want to turn a customer away, particularly if it's a customer with a checking account or another relationship.
attractive auto bank buying cut expensive fed interest loans people rates short three
Bank loans have pretty attractive interest rates these days. Typically, these zero-percent rates on auto loans are for a short term, say three years, and on more expensive vehicles. People end up buying the car, but use a bank loan to do so. Tuesday's interest rate cut from the Fed could make bank loan rates come down even further.
banking consumers free market paying rate savings
Banking was never free because consumers were not getting a market rate on their savings and were paying a lot more for loans.
banks businesses customers fighting small today
Small businesses are very important customers for banks today because there are more of them than ever before and each and every bank is fighting to get them.
banks edge measured small
Small banks come out with an edge on pricing, but what is not measured is the convenience factor.
attracting bank businesses key services small today
The key to attracting small businesses is to give them as many different services as possible. Because today if one bank won't do that, another will.
banks car credit finance larger market run seeing setting share signing unions
The larger banks are seeing a lot of market share in this area, but the larger credit unions and the ones being run by ex-bankers are setting up arrangements where a non-member can finance a car right at the dealership just by signing up to be a member.
again climb deal fixed gives great locking lowest merit might next rates relative start though variable versus
Think about the relative merit of variable rates versus fixed-rate credit. Locking in a fixed rate now gives you a great deal of comfort. Even though the lowest rate might be a variable rate, those could start to climb again next year.
bounce charge check less likely
There's likely to be a charge when you use this service, but it's less than the $25 bounce check fee.
affects amount business calling cards concern consumers credit curb effort federal great income lower main policy provide type
I think our main concern is in calling for some type of federal policy that affects the issuance of credit cards or any credit to consumers. This is a very competitive business and it does provide a great amount of convenience to consumers. Any effort to curb that would affect a lot of lower income consumers disproportionately.
less pay
You'll pay more for it, but it still should be less than your credit-card rate.
afford borrow high hit income increase layoffs level seeing
When you borrow to the max, you can't afford to take a hit on income, and unfortunately what we're seeing are layoffs and reductions in income and potentially an increase in the already high level of bankruptcies.