Sub-prime bad news is likely far from over
After spreading the risk everywhere through securitization, banks and brokers are now facing some difficult choices
Ratings agency primarily concerned about wholesale banks
Less than 5% of total net revenue attributable to subprime mortgage activities, Fitch says
Losses from U.S. subprime market expected to be manageable
Shock-absorption capacity core financial system is very high
Pilot scheduled to begin in fourth quarter
Emphasizes need for meaningful disclosure to borrowers of lending terms