The Credit Suisse analysts insist they are not expecting the euro area to break up - or for Greece to leave - but they believe it is likely there will be a dramatic reduction in cross-border business - leading to less loans for businesses and individuals.
A Treasury program makes it easier for homeowners who are underwater, meaning their properties are worth less than their loans, to refinance.
Ryan Ellis, the tax policy director for Americans for Tax Reform, a conservative antitax group, said his group opposed efforts by the Bush administration to nudge banks and lenders into restructuring some loans, much less direct government loans to homeowners facing foreclosure.
Because their portfolios rely less heavily on loans to domestic companies, and because they have ready access to foreign sources of liquidity, they are better able to weather rough conditions in the local economy.Ricardo Hausmann, chief economist at the Inter-American Development Bank, takes the argument in favour of foreign banks a step further.
Alas, this is really semantics: The FDIC will still be sucking money from the banking system to finance bank foreclosures, which means less money for loans to sound businesses and consumers.
The homeowner gains by getting a second chance - a low interest fixed rate mortgage with no penalties, no points, no hidden fees; and the feds gain because that's one less "toxic loan" to have to absorb.
Schools might also manipulate need-based aid packages by offering more grants and less loan or work study to the most desirable students in an attempt to influence their decision on enrollment.
The base rate cut is unlikely to make lenders less reluctant to offer loans to those with small deposits, so first-time buyers will still struggle to get a mortgage.
The bill's proponents will have to allay concerns that a one-year moratorium might make mortgage lenders less inclined to extend loans to New York home buyers, by reducing their leverage over borrowers who do not keep up with payments.
A majority of banks are less likely to offer loans to people with a FICO credit score of 620 and a 10 percent down payment than they were in 2006, according to the report.
