Business

Stiffer loans
by Claudia Sonea

US residents watch out, banks have raised the standards on all type of loans. In spite of the seven rate cuts the Federal Reserve made starting September last year, banks got to record highs on lending standards as the credit crisis continues. To our ears the news reached due to Fed’s report on Monday, but its survey was performed in April. If it is understandable that they tightened standards on home mortgages because of the homes’ sluggish market, then in the other cases it is unwelcome. For instance many borrowers were using credit cards as a source of money. Banks have raised lending standards as it follows: 15 percent- traditional mortgages, 55 percent- business loans, 32 percent- nontraditional mortgages. Credit cards and home equity lines of credit were also tightened as a consequence of the credit crisis that started last year together with defaults in the market for subprime loans owed to investors retiring from the subprime market. Fed’s admirable efforts made towards the avoidance of tougher standards on loans were annulled by big-time losses from loans to consumers and businesses or own investments. Also the central bank did great and helped banks and financial institutions by letting them add credit card debt, student loans and car loans to Fed loans and cutting a key interest rate. Now in the search for a solution, because US deals with a phenomenon never encountered before, only the bill of Senator John Kerry remains unexplored (reduce fees on loans from the government to small businesses). Don’t go away, you’ll find out what further steps will be taken.

related story: http://news.yahoo.com/s/ap/20080505/ap_on_bi_ge/bank_lending;_ylt=Ald1Y1lwFFe75UsvmFbpEWis0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are brought to you by CantellTV, its technology partner SigEx Telecom and its founder Chris Cantell. CantellTV is the fastest growing provider of digital broadcasting coupled with enhanced communications, allowing people to easily control, view, upload and share digital content through proprietary interface. CantellTV has relationships with a growing network of international clients delivering millions of videos per day with more than 50,000 new videos uploaded and 200 hours of new TV shows broadcasted daily to a wide range of viewers, from 5 to 7 year olds of LiveCartoons; to 16 to 24 year old active social users of MyJumps; to fortune 50 corporate clients utilizing enhanced broadcasting services. CantellTV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers. Chris Cantell retains consulting arrangements with several pre-IPO companies.</font><br>

Edited by: Katarina Zerzanova

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 1:22 AM