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BusinessWorld
Why Big Banks Keep Stiffing Small Companies - http://www.inc.com/constan...
Why Big Banks Keep Stiffing Small Companies
Despite denials, U.S. banks are deeply exposed to Euro debt. No wonder they're turning down 90% of small business loans. Why is this not surprising? Despite denials, it turns out that big U.S. banks are carrying a lot of risky European debt. This matters to business owners because it is likely a key reason those same banks are approving so few small business loans. In December banks with assets between $10 billion – $50 billion OK'd only 9.7 percent of these requests. For months soon-to-be former Treasury Secretary Tim Geithner has been going on about how well U.S. banks are protected from problems in Europe. Here’s what he told Congress in October, U.S. financial institutions, including our major banks and money market funds have substantially reduced their exposure to the economies of Europe that are under the most pressure. Our direct financial exposure to those governments and their financial institutions is quite small. Does $80 billion strike you as a small amount? Well it turns...
Despite denials, U.S. banks are deeply exposed to Euro debt. No wonder they're turning down 90% of small business loans. Why is this not surprising? Despite denials, it turns out that big U.S. banks are carrying a lot of risky European debt. This matters to business owners because it is likely a key reason those same banks are approving so few small business loans. In December banks with assets between $10 billion – $50 billion OK'd only 9.7 percent of these requests. For months soon-to-be former Treasury Secretary Tim Geithner has been going on about how well U.S. banks are protected from problems in Europe. Here’s what he told Congress in October, U.S. financial institutions, including our major banks and money market funds have substantially reduced their exposure to the economies of Europe that are under the most pressure. Our direct financial exposure to those governments and their financial institutions is quite small. Does $80 billion strike you as a small amount? Well it turns...