To have an effective monetary policy, you have to have a robust borrowing and lending cycle. The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.
Lacy Hunt quote
~ Arthur Helps (July 10, 1813 - March 07, 1875)
This was a disappointing quarter. While second-quarter results were affected by the volatility of our mortgage servicing rights, the root of our problem is the unacceptably high cost structure in our mortgage banking business. We know what we need to do, our efforts are well under way, and we will not be satisfied until we have fixed it.