Lending dropped at big banks

Uh-oh: Big banks shrink lending

By: Mihir Palan

It was going so well, money was heading to the banks, houses were selling. That was all a few years ago, but now, everything you dreamed of, maybe getting a job, all stopped. JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC) and Citigroup © have cut their lendings by 24 billion dollars by the first 3 months of the year. This is a huge change because last year, the four companies rose their lendings by 34 billion dollars. What’s more, the drop at big banks comes at a time when the small banks are increasing theirs.  The biggest drop from all four banks is the Bank of America. The loans their has dropped an outstanding 78 billion dollars from the past two years. This sort of thing happened last year, the bank got out of business and had to get money by the business of the lending by mortgage brokers. I asked what classmate Aiden Woodworth what he thought of Bank of America’s bankruptcy, “I thought it is a very big disappointment to the global economy.” Bank analyst Dick Bove also shares about the current financial issues of B of A, “Bank of America got hurt pretty badly by its mortgage business” he said, “banks are still in protection mode.” Dick was following the bank stocks for his company, Rochdale Securities.  Many  scientists think that this current issue could destroy  all the hard work by everyone to recover the economy.

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http://finance.fortune.cnn.com/2012/05/01/bank-lending-shrinks/?source=cnn_bin