Associated Press | Regulators must do all they can to help banks make loans to credit-worthy borrowers, especially small businesses, a development that’s critical to strengthening the economic recovery, Federal Reserve Chairman Ben Bernanke said Thursday. It’s a delicate dance for the Fed and other banking regulators. As regulators encourage banks to make loans to sound borrowers, they are also working to make sure banks get back on firmer footing after suffering through the worst financial and economic crises since the 1930s.
Get the full story: Bernanke says banks should loan to the credit-worthy.
Paaaalease,
Banks have to lend to whomever the government (or other sundry cronies like Ginnoulias) deems they should lend to. Imagine the stink “THE REVEREND JESSIE JACKSON” would make if banks ONLY lent to “the credit worthy”. Lets face facts, the average borrower in North Lawndale is NOT as credit worthy as the average borrower in Kenilworth.