Obama leaning on the banks

[Alaska_Darin_Is_Gay]

http://www.washingtonpost.com/wp-dyn/conte...9121401464.html

[keepthefaith]

http://www.washingtonpost.com/wp-dyn/conte...9121401464.html

 

Our President is a Jackass. So he wants banks to loosen credit standards and take more risk after the whole system melted down due in part to those practices.

 

Fact is, if you or your business has good credit and the income to support a loan, you can get what you need right now. Credit standards are tighter and for good reason. I want the banks to be careful with the taxpayer funds they have received.

[Magox]

Great! Lets threaten the banks to lend even more, who care's that unemployment is at 10% and rising, home values are still deteriorating in many regions of the country, commercial real estate is set to implode, small businesses are continuing to struggle, ya, let's lend MORE!

 

Genius!!

 

I wouldn't be surprised that BO is going to give the banks "an offer they can't refuse". Probably something along the lines of " You better start lending more or 'you see that bankers bonus tax that is about to be passed in England and Spain' that will be you next"

 

On another similar note, I see that the W.H is pushing for Fan and Fred to lend more as well.

 

They don't look for the cure, they look to soothe the symptoms.

[DC Tom]

Great! Lets threaten the banks to lend even more, who care's that unemployment is at 10% and rising, home values are still deteriorating in many regions of the country, commercial real estate is set to implode, small businesses are continuing to struggle, ya, let's lend MORE!

 

Genius!!

 

I wouldn't be surprised that BO is going to give the banks "an offer they can't refuse". Probably something along the lines of " You better start lending more or 'you see that bankers bonus tax that is about to be passed in England and Spain' that will be you next"

 

On another similar note, I see that the W.H is pushing for Fan and Fred to lend more as well.

 

The don't look for the cure, they look to soothe the symptoms.

 

Lend more while the government tightens regulations and, by implication, lending standards.

 

Yeah, this is a good idea.

[ACor58]

Unfortunately our "Rock Star" President is ignoring the current regulatory enviornment. I am a commercial banker and trust me when I tell you that the regulations have tightened significantly, making it harder for banks to make loans to even solid companies and requiring largersreserves against potential default, which strictly limits the capital that we are able to lend.

 

In addition, the more solid companies have enough cash to weather this storm. Loan demand from the typical A or B rated company has actually decreased. The businesses that really need to borrow are on life support and therefore present a greater risk to the bank.

 

If he decides to contiue the governments increased support of the SBA it might help, but even those guidelines make it difficult to help existing customers that are already struggling.

 

I am not a Bush supporter by any means but you asked for it America. The same person that was not qualified to be a US Senator is the same person that is nowhere near qualified to be US President.