Banks still not interested in making fresh loans

By | February 7, 2009

The US government has pumped around $187.5 billion into the national Banks including Bank of America, Citi group, JP Morgan. Whose money is it? It is from the taxpayers that Government has taken from in the form of taxes in order to help these big banks to survive even in recession and help people from it.

But we still don’t see banks issuing loans properly to even the hunkering down firms of big industries. Isn’t that insane?

Meanwhile companies, without finding any aid, are continuing with their lay-off spree. This is increasing the number of jobless day by day. It is a no brainer to say that it is the banks which can aid them in the critical times and stop lay-offs.

It was found that banks aren’t lending money freely, despite of the government’s efforts, to even the major players of the industries. The new loans to larger companies plunged to 37 percent if the last quarter of 2008 from third quarter.

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