Banks Don’t Lend More When the Government Asks Them To!
We are shocked — SHOCKED! — to find that Bank of America and other large institutions did not respond to Treasury Secretary Geithner’s entreaties to lend more freely: “Geithner Saying ‘Be Like Buffet’ Can’t Make JP Morgan Lend More.â€
Bloomberg writes,
While financial institutions including Citigroup Inc. and Bank of America Corp. have received more than $200 billion in capital from the government, they are limiting loans at a time of mounting unemployment, rising company bankruptcies and increasing regulatory oversight. Commercial and industrial lending has dropped 17 percent since October 2008, according to Federal Reserve data.
Read the rest of the story here:
http://www.hsdent.com/blog/2009/11/09/big-shock-banks-dont-lend-more-when-the-government-asks-them-to/
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