White House to banks: Start lending now

[bama2008]

WASHINGTON – An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans.

"What we're trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money," White House press secretary Dana Perino said.

Though there are limits on how much Washington can pressure banks, she noted that banks are regulated by the federal government.

"They will be watching very closely, and they're working with the banks," she said.

Anthony Ryan, Treasury's acting undersecretary for domestic finance, made the same point in a speech in New York before financial executives.

"As these banks and institutions are reinforced and supported with taxpayer funds, they must meet their responsibility to lend, and support the American people and the U.S. economy," Ryan told the annual meeting of the Securities Industry and Financial Markets Association. "It is in a strengthened institution's best financial interest to increase lending once it has received government funding."

http://news.yahoo.com/s/ap/20081028/ap_on_bi_ge/financial_meltdown

[robinlynne]

1. citizen to white house. Give us our 700 billion back NOW!

[Iwasthere]

2. What rate are they being encouraged to lend at?

This isn't mentioned????

[sandnsea]

3. Their first obligation is to the shareholder

They have no responsiblity to the American people or the U.S. economy.

The Free Marketeers have been telling us that for 20+ years.

This responsibility to America sounds something like, uh, patriotism, or socialism, or protectionism...

Dumbass Republicans.

[CoffeeCat]

4. Yeah....rriiiiiiiiiiiight....

Where do we start with this nonsense?

1.) Banks are using the money to gobble up failed banks. For the WH to pretend not to know this--is revolting.

2.) So what if banks put the money out there for consumers and businesses to loan.

How many of you out there want to take out a loan right now? Raise your hands! Come
on, don't be shy! The banks want you to incur more debt during a time when our economy
is swirling down the drain and consumer confidence is the lowest in recorded history.
Anyone?????? Anyone??????

What about businesses--the vast majority of which are cutting employees and scaling back inventory--because consumers
have stopped spending...what say you???? Want to take out a nice, big fat loan????

Yeah, I didn't think so.

3.) Perino is full of shit. Bushco and the rest of their neocon playmates have been in bed with
the bankers and the Wall Street executives for decades. They all cocktail together. When they
cut the check--without any demands or stipulations--they knew exactly what they were doing.

So, don't act like you have the peasant's best interest at heart NOW! Please.

That is all...carry on.

/rant off.

[KansDem]

5. This is horseshit!

The banks will do exactly what they want to do and no POS POTUS is going to make them do otherwise.

Though there are limits on how much Washington can pressure banks, she noted that banks are regulated by the federal government. --Maybe those limits should have been modified or eliminated before the $700,000,000,000 was released.

They will be watching very closely, and they're working with the banks... Yeah, right...:eyes:

[DJ13]

6. Paulson had so much leverage, but he wasted it

He could have forced most of the bailout money to be loaned out to prevent the credit freeze, which England did in their bank bailout.

He also could have forced new usury regulations on them to protect the consumers.

The chance for that is gone now.

What a bunch of idiots these free market Republicans are.

[MannyGoldstein]

7. The Banks Have Said They're Holding The Cash, Not Lending It

http://www.nytimes.com/2008/10/25/business/25nocera.html?scp=4&sq=bank%20loan%20billion&st=cse

This is all a little goodbye kiss to the Predator Class from Bush and Paulson. Nothing more.

[rucky]

10. boy did we get duped. n/t

[jimshoes]

8. Just don't lend it to the speculators who

then run up the prices on such things as crude oil and things like that.

[seemslikeadream]

9. Dear Sirs

You have marked my check "insufficient funds," How do I know whether that refers to me, or to you?"