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Meanwhile, an industry report warned that borrower debt rose in the third quarter, along with the national delinquency rate.
U.S. bankcard borrower debt surged 6.0% from a year ago and rose 1.6% from last quarter, to an average of $5,710.
Bover et al. (2014) uses a European survey on borrower debt, while in our case we are using actual data (not coming from a survey) and a matched lender-borrower data which is crucial to make any inference on credit supply and risk-taking.
It can force creditors to write-down borrower debt post-crash more readily than U.S. governments could, for example.
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If so, those signatures allowed banks to push foreclosures through overly quickly, charge improper fees and assert improperly inflated borrower debts.
And for most muni borrowers, debt loads are not crippling.
A former employee who testified in a separate civil suit against Morgan Stanley said that bank officials knowingly bought loans in which borrowers' debt levels were more than 50 percent of their total income, according to the A.C.L.U.
While Egan-Jones, an upstart bond rating agency in Wynnewood, Pa., has downgraded MBIA's own debt (as opposed to the insurance guarantee MBIA makes on other borrowers' debt) from AA to A+, investors are not terribly worried: Credit swaps on MBIA's debt have rallied with the market.
The Education Department has made "significant progress" in reviewing borrowers' debt relief claims, Undersecretary Ted Mitchell said.
Some consumer advocates and state attorneys general wonder why the department is allowing aggrieved borrowers' debt balances to grow while their debt relief claims are evaluated.
On Monday, the Education Department seemed to provide evidence to back up Waters' assertion when it posted 14 job openings for lawyers to adjudicate borrowers' debt relief applications.
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