When unemployment is on the increase and the economy is limping, why promote consumer loans with out analysing repaying capacity?Loan promotion is backed by powerful market promotion.
Unless the banks know that loans are tricky affairs, they should be prudent in selecting whom they lend to..
Bailed out companies must be more careful as they are spending public money.
Story.
CHARLOTTE, N.C./NEW YORK (Reuters) – Bank of America Corp posted a $1 billion quarterly loss on Friday as consumer credit woes eclipsed investment banking earnings, underlining why the bank remains on a government respirator.
The nation’s largest bank received two taxpayer bailouts totaling $45 billion after acquiring broker Merrill Lynch & Co and mortgage lender Countrywide Financial Corp at the height of the financial crisis last year. It says it wants to start repaying the money but has not yet done so.’
http://www.reuters.com/article/topNews/idUSTRE59F1TJ20091016?feedType=nl&feedName=ustopnewsearly
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