Friday, December 10, 2010

Canadian Bankers Sound Alarm

Bankers Sound Alarm On Loans
Some of Canada’s top bank executives are growing increasingly uncomfortable with the level of debt Canadians are taking on through long-amortization mortgages. “I think all of us are looking at [what to do],” said Ed Clark, chief executive of Toronto-Dominion Bank, adding the current situation “is not a good thing.” Speaking in an interview, Mr. Clark said TD has already acted to slow lending but it’s now up to the federal government to take steps such as reducing maximum amortization periods on home loans to 25 years from 35 years or lowering loan-to-value ratios. “These are exactly the things that government should be doing and there’s been a lot of discussion,” he said.

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