Who bailed out the big banks, the so-called "too big to fail" banks, to the tune of over $700 billion? The American taxpayer including small business. What do small businesses get in return? Refusals of their applications for loans!
This week, President Obama is urging the large banks to pick up their lending to small businesses for this very reason. We helped them. It's time for them to help us. It was reported yesterday that the five largest U.S. bank holding companies hold 45 percent of all bank assets in the U.S., which is twice what they held 20 years ago. However, they hold more derivatives in their portfolios than business loans.
According to the same article, which quotes a survey by The Banker, business lending has dropped by a whopping 48 percent since last year. As of October 7, less than one-third of the stimulus money made available for the Small Business Administration's new ARC loans has been used because the large banks won't make the loans.
Obama said in his Saturday radio address that the administration will take every appropriate step to prod the large banks to increase their lending to small businesses. Obviously, the administration is aware that any economic recovery cannot happen without the participation of small business and small business can't participate unless they have access to credit.
This week, President Obama is urging the large banks to pick up their lending to small businesses for this very reason. We helped them. It's time for them to help us. It was reported yesterday that the five largest U.S. bank holding companies hold 45 percent of all bank assets in the U.S., which is twice what they held 20 years ago. However, they hold more derivatives in their portfolios than business loans.
According to the same article, which quotes a survey by The Banker, business lending has dropped by a whopping 48 percent since last year. As of October 7, less than one-third of the stimulus money made available for the Small Business Administration's new ARC loans has been used because the large banks won't make the loans.
Obama said in his Saturday radio address that the administration will take every appropriate step to prod the large banks to increase their lending to small businesses. Obviously, the administration is aware that any economic recovery cannot happen without the participation of small business and small business can't participate unless they have access to credit.
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