Wells Fargo & Co, the largest U.S. mortgage lender, is tiptoeing back into subprime home loans again.
The bank is looking for opportunities to stem its revenue decline as overall mortgage lending volume plunges. It believes it has worked through enough of its crisis-era mortgage problems, particularly with U.S. home loan agencies, to be comfortable extending credit to some borrowers with higher credit risks.
The small steps from Wells Fargo could amount to a big change for the mortgage market. After the subprime mortgage bust brought the banking system to the brink of collapse in the financial crisis, banks have shied away from making home loans to anyone but the safest of consumers.
Any loosening of credit standards could boost housing demand from borrowers who have been forced to sit out the recovery in home prices in the past couple of years, but could also stoke fears that U.S. lenders will make the same mistakes that had triggered the crisis.

A dark corner of European finance is about to be illuminated by European Central Bank inspectors who are sifting through loans that banks restructure for clients and don’t fully disclose.
“What’s scaring investors is the question of whether banks are giving money to companies that deserve to go bankrupt and keeping them alive to avoid recording losses,” Mascia Bedendo, an assistant professor of finance at Bocconi University in Milan, said in a phone interview. “The amount of forborne and nonperforming loans is still very obscure.”
Four of the continent’s 10 biggest banks by assets don’t quantify loans they renegotiate, company filings show. Less than one-third of 39 major lenders disclose what the European Securities and Markets Authority calls “clear quantitative information.” None of the firms that publish figures, including Deutsche Bank AG (DBK) and Intesa Sanpaolo SpA (ISP), reveal as much as U.S. counterparts such as JPMorgan Chase & Co. (JPM)
The ECB has asked the euro area’s 128 largest banks to provide unprecedented detail about their lending as part of a review that will determine whether firms are giving borrowers easier payment terms to avoid showing loans as defaulted. Europe’s political leaders, seeking to avoid a repeat of taxpayer-funded bailouts during the 2008 financial crisis, asked the central bank to take responsibility for regulating the biggest lenders from national watchdogs.
In a rare public appearance, Gina Rinehart said in a video posted on the website of the Sydney Mining Club that Australians should not be complacent about mining investment when African workers were willing to work for $2 a day.
"Business as usual will not do. Not when west African competitors can offer our biggest customers an average capital cost for a tonne of iron ore that is 100 dollars under the price offered by the merging producer in the Pilbara.
"Furthermore, Africans want to work and its workers are willing to work for less than $2 per day," said Ms Rinehart, who was worth an estimated $18 billion in February according to Forbes.
Gina Rinehart, a mining magnate worth an estimated £19 billion, has advised those jealous of the wealthy to "spend less time drinking or smoking and socialising, and more time working" in order to be successful.
Miss Rinehart, 56, also rounded on Australia's "class warfare", insisting it was billionaires such as herself who were doing more than anyone to help the poor.
She warns that Australia risks following European economies ruined by "socialist" policies, high taxes, and excessive regulation.
Miss Reinhart stated there was "no monopoly" on becoming a millionaire.
In May Miss Rinehart was declared the richest woman in the world, after building upon an estimated £13 billion mining empire inherited from her late father, Lang Hancock, in 1992.
President Barack Obama signed bills raising the nation’s debt limit and scaling back benefit cuts for U.S. military retirees, taking two issues with economic implications out of the spotlight ahead of November’s elections.
Obama, spending the weekend in California, signed the legislation yesterday without comment.
The increase in the debt limit into March 2015 cleared the House and Senate last week with no conditions attached to it in a victory for Obama. The measure likely delays the need for another increase until mid-2015 because income-tax payments will postpone the date that the government exhausts its borrowing authority.
The partial reversal of cost-of-living adjustments that reduce military pensions comes only two months after lawmakers included the cuts in a budget deal. Veterans groups mounted a public lobbying campaign to undo the changes, and the bill that Congress passed last week meets part of their demands.
Obama traveled to California Feb. 14 and is staying with friends at Sunnylands, the Annenberg retreat in Rancho Mirage. The night he arrived he hosted Jordan’s King Abdullah II at the retreat to discuss the crisis in Syria as the U.S. seeks options to increase pressure on Syrian President Bashar al-Assad to end violence against civilians and leave power.
Obama’s schedule yesterday included a round of golf.
Want to invade Switzerland? Here’s a tip: strike outside office hours.
When an Ethiopian Airlines Enterprise aircraft carrying 202 passengers entered Swiss airspace today after being hijacked by the co-pilot en route to Rome, Switzerland’s Air Force remained on the ground. That’s because the incident occurred outside normal office hours. Instead, French and Italian fighter jets escorted the Boeing 767 to a safe landing in Geneva.
“You have a budget and you have to prioritize,” said Swiss Air Force spokesman Juerg Nussbaum. While Switzerland monitors airspace around the clock, intervention only occurs during routine business hours starting at 8 a.m., he said.
The Ethiopian plane, which originated in Addis Ababa, landed in Geneva shortly after 6 a.m. and the co-pilot gave himself up to police after sliding down a rope from the cockpit window. Authorities briefly closed the airport, and by early afternoon it had resumed normal service.
As it passed through Egyptian airspace, the Ethiopian carrier flashed a hijacking code. That alerted Italian officials, who scrambled Eurofighter aircraft. Later, a duo of French Mirage 2000s escorted the airliner to Geneva. Both Italy and France have permission to enter Swiss airspace.
The relaxed attitude toward today’s breach comes just a week after Swiss voters approved a plan to toughen border restrictions and curb immigration. Swiss officials say that the Ethiopian co-pilot is unlikely to receive asylum, and that he faces as many as 20 years in prison.

Segundo a publicação alemã «Spiegel», o estado alemão paga os gabinetes de trabalhos aos ministros deslocados mas não uma casa.
Na Alemanha, e para poupar dinheiro, são vários os ministros deslocados que dormem nos gabinetes de trabalho.
De acordo com a publicação "Spiegel", o estado alemão paga aos ministros que estão longe de casa os gabinetes de trabalho mas não uma casa.
A ministra dos assuntos da família, por exemplo, dorme num escritório que dispõe de cozinha e de casa-de-banho. Já a ministra da defesa, escreve a revista, tem um pequeno sofá e os ministros da justiça e do emprego também recorrem à mesma prática.
A oposição insiste que os governantes devem declarar nos impostos se utilizam o local de trabalho como habitação.