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Its stake in lender GMAC might be worth, at best, its book value of $5 billion.
Republicans in the House expressed disappointment at the administration's change of course, arguing that the cuts in lender subsidies went too far.
Mr. Obama removed banks as middlemen in making federal student loans, saving billions of dollars a year in lender fees, some of which was used to pay for increased student aid.
Taxpayers are rebelling in lender countries like Germany and Finland, and euro zone politicians would struggle to justify lending more money to Greece when it is already barely complying with current bailout conditions in the first place.
Each foreclosure costs lenders $50,000, according to data cited in a 2006 study by the Federal Reserve Bank of Chicago, so an additional two million foreclosures could mean $100 billion in lender losses.
For example, lenders do not disclose all fees charged in the servicing and collection of student loans, and loan contracts do not always include benefits that are promised in lender advertisements — like the possibility of a lower interest rate after graduation.
Similar(46)
Mr Cable said Gordon Brown had missed an opportunity in this month's budget to rein in lenders prepared to let households go dangerously into debt.
In fact, I believe that the entire real estate and mortgage meltdown was more the result of systemic issues---in lender behavior, regulatory perspective, and borrower attitudes---than the result of natural economic forces.
Five years after the housing market started teetering, economists now worry that the rise in lender-owned homes could create another vicious circle, in which the growing inventory of distressed property further depresses home values and leads to even more distressed sales.
* Know where you stand in lenders' eyes.
"We don't hear students clamoring for choice in lenders.
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Justyna Jupowicz-Kozak
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