Fed: subprime, the defaults will not soon

The chairman of the Federal Reserve, Ben Bernanke argues, before the banking committee of the House, that the defaults on mortgages to subprime are still growing and adds that by the end of the year there will be new rules to protect consumers in the field loans since the current rules made it difficult for legislative remedies, and says that U.S. Bank did not initially understand what the magnitude of the financial earthquake triggered by the loans to high risk and adds "as I said last month in a speech in Kansas City, the consequences of the crisis of mortgages, in terms of losses on global financial markets, have exceeded even our most pessimistic predictions "but the concern is likely to decrease the propensity to risk for savers, especially for those products more complex and less transparent. Indeed, according to Bernanke, the crisis has highlighted the need not only more information and new rules, but also a more uniform application of standards in a market that has a fragmented structure. " The chairman of the Fed declared that the bank "is working closely with various groups in the country to reduce the risk of seizure of homes." Also believes that standards should be set more appropriate to define the balance sheet or income of those who are preparing to buy the house and thus limit the more possible problems of insolvency, as the vicend subrime brought to light.

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