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« The New Fed Policy: Better Than Nothing | Main | Incentive Systems Can Be Counterproductive »

August 12, 2010

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Spencer

During a time when everyone currently involved in lending is trying to avoid having a finger pointed at them as the reason for a defaulting loan (or series of loans), I could understand why an examiner would be putting pressure on banks. However, I'm unfamiliar with how accountability for systemically bad loans is structured between the banks and their examiners. Clearly the banks lose if their client is in default, but if the problem is widespread, are examiners held accountable? Is there any information you could provide on this?

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