When the government stuffed billions of dollars down the throats of the major banks, it was for the banks own good. With their newfound cash, they were supposed to lend back and forth, thus rescucitating the economy.
As we learned this weekend, the banks are just holding their precious cash instead of lending it. Now the White House is shaking a small stick at the banks, hoping to remind them who is charge.
AP: An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans.
“We’re trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money,” White House press secretary Dana Perino said.
Though there are limits on how much Washington can pressure banks, she noted that banks are regulated by the federal government.
“They will be watching very closely, and they’re working with the banks,” she said.
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