Obama To Jawbone Bank CEOs
President Obama is set to tell bank CEOs that he wants them to lend more among other things. Check out the story here. I was struck by this bit though:
The lending issue irks some in the industry. “The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”
I told you about this a year ago, but I have updated information. Yesterday, I spoke with a contact who works for one of the largest banks in the country, considered to be one of the best managed banks in the country (this bank is based in the upper midwest and has a big investor who is a very rich guy and who lives in Omaha). She tells me that her bank is lending and is prepared to lend alot more, just that there are few takers. Nobody is expanding. Can't push on a string, folks.
The lending issue irks some in the industry. “The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”
I told you about this a year ago, but I have updated information. Yesterday, I spoke with a contact who works for one of the largest banks in the country, considered to be one of the best managed banks in the country (this bank is based in the upper midwest and has a big investor who is a very rich guy and who lives in Omaha). She tells me that her bank is lending and is prepared to lend alot more, just that there are few takers. Nobody is expanding. Can't push on a string, folks.
posted by Donny Baseball at 2:52 PM
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