Home Prices Set To Fall Further:Richard Fairbank, Capital One CEO
Speaking at the Barclays Capital 2010 Global Financial Services Conference, Capital One CEO Richard Fairbank was pessimistic about the housing market and about consumer demand — but optimistic about his bank’s prospects.
Fairbank, in remarks that were broadcast on the web, was asked by an audience member whether there will be a double-dip in the housing market. He chose his words carefully. “I think we feel very cautious about the housing market,” Fairbank said. “I think that even despite some of the recent months where home prices have gone up, I think it’s a very plausible case for home prices to go back down again.”
His dim view of the U.S. housing market, he said, is based on the current “logjam” of defaulted mortgages and foreclosures being dealt with at Capital One, which added a retail banking arm to its lending and credit card businesses in 2005. “Unsold inventory is really at just about an all-time high.”