Not exact matches
Chapter 3 discusses how conflicts of interest between bank managers, shareholders, and
debt holders can lead to
excessive bank risk taking from society's
point of view.
As the gap widens, it creates rising uncertainty about how excess
debt servicing costs will ultimately be allocated, and at the
point at which this uncertainty is high enough to alter materially the behavior of economic agents, and so lower the net asset value of the economic entity, the borrowing country has «
excessive»
debt.
This last
point, in particular, to the attention of the moment with the economy today and this factor has seen many relations and marriages are declining due to the
excessive debt.
Under this rule, lenders can not include toxic features such as negative - amortization «option ARMs» that increase borrowers»
debt with each monthly payment, or
excessive upfront
points and fees (these will be limited in most cases to 3 percent of the loan amount).