Banks Pull Another $1 Billion From Small Business Lending
NEW YORK -- CNNMoney reported this week that the nation's biggest banks cut their collective small business lending balance by another $1 billion in November. The drop marked the seventh straight month of declines.
According to the report, 22 banks that got the most help from the U.S. Treasury's bailout programs have cut their small business loan balances $12.5 billion since April. The banks' total lending has fallen 4.6 percent in that seven-month period, to $256.8 billion.
"As Wall Street megabanks return to health -- and celebrate with lavish bonuses -- President Obama and his administration have been pushing financiers to help spur a main street recovery. Small business owners are still reporting difficulty finding banks willing to extend the credit they need to launch, run and grow their ventures," said CNNMoney.
In December, the president met with a dozen CEOs of the nation's biggest banks to pressure them to reverse their small business lending declines. Five of the 22 banks reported higher small business loan balances in November than they did in April, according to the report. But 10 of the 22 banks have cut their small business balances every single month since April. That list includes firms such as JPMorgan, which are now posting huge profits. In the past seven months, JPMorgan's small business loan balance has dropped by almost $962 million, or 3.7 percent.
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According to the report, 22 banks that got the most help from the U.S. Treasury's bailout programs have cut their small business loan balances $12.5 billion since April. The banks' total lending has fallen 4.6 percent in that seven-month period, to $256.8 billion.
"As Wall Street megabanks return to health -- and celebrate with lavish bonuses -- President Obama and his administration have been pushing financiers to help spur a main street recovery. Small business owners are still reporting difficulty finding banks willing to extend the credit they need to launch, run and grow their ventures," said CNNMoney.
In December, the president met with a dozen CEOs of the nation's biggest banks to pressure them to reverse their small business lending declines. Five of the 22 banks reported higher small business loan balances in November than they did in April, according to the report. But 10 of the 22 banks have cut their small business balances every single month since April. That list includes firms such as JPMorgan, which are now posting huge profits. In the past seven months, JPMorgan's small business loan balance has dropped by almost $962 million, or 3.7 percent.
Related News:
The New Normal