Business

Heading against the wall, or let them reap what they sow.
by Milota Sidorova

President Obama met with the top American bankers on Monday. He tried to persuade them to be a good girl now – literally asked them to pay back the moral debt to American people. After generous bailout plan the banks recovered and the most of them paid the money back. However, the government was expecting more. Banks should have offered more easy loans to small and middle sized businessmen. Despite Obama’s populistic speech – like "We rise and fall together," caused some effect among several banks increasing loans, the general message lost the target. Althogh Bank of America and JP Morgan Chase&Co, said they would lend extra $5 and $4 billion on requested! loans, most of the banks made no comment. The highest bankers – whose reputation is deeply underground between American public suggested they couldn’t extend the loan applications because of previous governmental regulation. According to this they were obliged to keep enough cash to prevent from any risks and for this reason – keeping cash on the hand they argued they couldn’t transform more money available to the people. Here comes the core of the situation – after the banks got the save rope they simply refused to follow more governmental instructions. Well, like everywhere around the world they survived the crisis and got out with even bigger profit. Who now has the power to face them? A lot of critics suggested that it is not the President able and willing enough to compete with bankers – his words are not followed by strong actions. But it is the sign for the public, message for them to increase the pressure on their Congressme! n. President is expected to continue with the meetings the n! ext week on Dec 22 with representatives of smaller financial institutions.

related story (sgx16126): http://news.yahoo.com/s/ap/20091214/ap_on_bi_ge/us_obama_ban...

by Milota Sidorova 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.

posted by Blog TechSource @ 1:15 PM