US banks stingy with loans

The U.S. public is horrified: State-based banks continue to distribute bonuses and dividends, but keep in loans back. President Obama Geithner and finance ministers will now continue on a double strategy: Obama complains about bonuses. And Geithner urges more lending to the public.
According to the survey released Monday evening by the Ministry of Finance took the 21 largest funds in the country for their commitment mortgages, immobilienbesicherte loans, consumer loans and loans to businesses in January decreased significantly.

Finance Minister Timothy Geithner expressed concern and urged the banks to the economy to support: “The White House has for the extraordinary protection of banks erected. The banks are required, such support also for the benefit of the economy,” Geithner said on Monday. The banks should do everything possible so that businesses and households again credits would go.

The statistics on lending to emphasize that the support of Washington’s actions do not automatically boost the economy. It would help desperately needed: Since December 2007 is the largest economy in recession. In the fourth quarter of shrinking gross domestic product (GDP) for the year projected at 6.2 percent, unemployment climbed in February to 8.1 percent – the highest level for 25 years.

The government of President Barack Obama with a lift economic program, help for homeowners and a new bank rescue plan against the dramatic economic downturn. On 17 February Obama the “Recovery Bill” in the amount of $ 787 billion.

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