Tuesday, January 29, 2013

Big banks: Get off your ass(ets)!

98 per cent of U.S. commercial banking institutions are the so-called "community banks," each with less than $10 billion in assets.

Last Sunday's New York Times said these 5,500 community banks have only 12% of total U.S. banking assets, but they have issued more than half of the banking industry's small business loans.

That means that the really, really big banks, like J.P. Morgan, have 88% of total U.S. banking assets, but they've issued less than half of the existing small business loans.

More proof that the big banks—the ones that are "too big to fail," the ones that we bailed out a few years ago—have thanked America for its generosity by disgracefully limiting their loans to get American businesses back in the game and get Americans working again.

If the big banks wanted to, they could go on a lending spree and jump start our national economy and let the small business "job creators" actually do their thing.

Big American businesses have access to equity markets and cheap corporate bonds to finance their operations.

The big banks need to get off their assets and make more loans to small businesses.

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