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Obama Lectures Bankers
With Wells Fargo announcing Monday that it too was repaying its $25 billion in bank bailout money, the final large bank was out from under the scrutiny of the federal government.
This was the backdrop as President Obama spoke for an hour or so to top bankers in an attempt to get the major banks to loosen their purse strings and increase lending. He also implored them to make more loans to small and medium-sized businesses, which have the most potential to create new jobs.
The plea for making more loans available was made to the top brass of US Bancorp, Bank of America, JP Morgan Chase, Morgan Stanley, Goldman Sacks, Citigroup, and Wells Fargo, both publicly and in private. Combined, this big seven will soon have paid back about $200 billion of the $453 billion given to banks, automakers, and such. The total stimulus package was $787 billion.
Despite paying back the loans, the President reminded bankers that they have an obligation to the American public, which bailed them out during the financial crisis a year ago.
While Bank of America pledged to increase small business loans $5 billion in 2010 over 2009 levels, and JP Morgan promised last month $4 billion more in 2010, the bankers pointed to the slow economy as reason to be cautious about loaning money.
Until the government and banks can get money into the hands of businesses that will then make jobs and get the money to American families, the economy will sputter. Better times are ahead, but let's hope Obama can push things along quicker.
- Mountain Man and City Girl
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