Alan & davelj are probably right with the ‘greater good’ theory. I’m in the banking business – I should be thankful for whatever bone they throw my way from a job stability standpoint.

However, if these new lax FDIC standards are implemented, banks should be required to disclose the aggregate LTV composition of their CRE portfolio for each property type. At least then investors and depositors can make a sound decision. My guess is SDNB had pretty high LTVs across the board compared to other banks.

Dave – do you really think effective legislation/regulations will be passed to prevent future problems? I’ve been shocked by what I’ve seen so far.