Banks to Use Bailout Funds for Loans

Ad Feedback

Some U.S. banks are promising to use the money they're getting from the government's bailout program for new loans.

Still, some banks had said they didn't plan to use the money for loans that quickly. Several executive say it's too soon to start making loans since most banks haven't yet pocketed the bailout funds.

"We need to invest and lend to our customers and communities. The industry is ready and more than able to do that, but nobody can lend $25 billion in two days or two weeks," John R. Koelmel, CEO of First Niagara Financial Group Inc., told the Wall Street Journal. "It's going to take time."

Now some in Congress are questioning the effectiveness of the rescue program, the Journal reports.

With political pressure from Congress rising, some banks now say they'll start making loans as soon as they can.

However, some banks say they're making the loans because it's the right thing to do, not because of any pressure from Washington.

Sources: The Wall Street Journal, CBN News

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

CBN News

CBN News

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.