Recall the term coined on these pages a few months ago:
A critter, or organization, or industry, with the mouth of a Hippo and (ahem) “exit orifice” of a Canary. Used to describe the effect on a system where a large volume of inputs overwhelms other elements of the system.
Then read John Murphy’s anecdote from the Medina Report blog:
“Yesterday I called US Bank on behalf of a client. As I waited through all the obligatory sales and customer service pitches on the phone, one of the statements they made was that US Bank is not accepting new applications for refinancing unless you are already a US Bank customer. Apparently they are so swamped with applications that they can only deal with current customers….interesting.”
At the wholesale level, I’ve also seen US Bank raise their interest rates high enough that they are out of the market – a common tactic for big lenders overwhelmed with volume. We’ve heard similar reports out of other major lender-servicers such as Citi.
Makes one wonder what the customers they are working with are getting for rates, no?