# Banks blame government for lack of lending **URL:** \ **Category:** Miscellaneous and Personal Stuff I Must Share\ **Created:** [February 3, 2009, 5:07pm UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270 "2009-02-03T17:07:58Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![Johnny\_L.A](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnny_l.a/32/1084_2.png) [@Johnny\_L.A](https://boards.straightdope.com/u/Johnny_L.A)\ **Post date:** [February 3, 2009, 5:07pm UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/1 "2009-02-03T17:07:58Z")
[Link](http://www.msnbc.msn.com/id/28985294/). > [@](#): > > NEW YORK - Banks that are being scolded by the government for not lending are blaming a new obstacle: The government itself. > > Fearing more bank failures, federal regulators are forcing institutions to hold more money in reserve and scrutinizing loans. But bank executives complain that the extra oversight thwarts their ability to quickly pump billions of bailout dollars into the ailing economy. > > \ > > “They basically told us to stop lending,” [Chief executive Babette Heimbuch] said. > > \ > > “I’m skeptical,” Democratic Rep. Barney Frank of Massachusettes, chairman of the House Financial Services Committee, told The Associated Press in an interview. “If you’re a bank that has TARP money, then you have more capital and you should be able to lend.” So… Let me get this straight: Banks get a share of $700,000,000,000 in TARP funds. The Federal Reserve lowers the prime rate to 0% so that banks can get cheap money to loan. In return, they ask the banks to have capital equal to 12% of their assets instead of 10%. Banks say they can’t make loans because an extra 2% of their assets is too much to ask, even after receiving TARP funds and having access to 0% loans. At least they had enough money to pay multi-million-dollar bonuses to their executives! Jesus wept. ---
**Author:** ![Tuckerfan](https://avatars.discourse-cdn.com/v4/letter/t/eada6e/32.png) [@Tuckerfan](https://boards.straightdope.com/u/Tuckerfan)\ **Post date:** [February 3, 2009, 9:47pm UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/2 "2009-02-03T21:47:31Z")
I’ve heard that the average annual salary for the banking execs is something like $263 million. Methinks they might have a bit more cash to lend out if they didn’t pay themselves quite so much. ---
**Author:** ![Johnny\_L.A](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnny_l.a/32/1084_2.png) [@Johnny\_L.A](https://boards.straightdope.com/u/Johnny_L.A)\ **Post date:** [February 3, 2009, 11:03pm UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/3 "2009-02-03T23:03:26Z")
> [@Tuckerfan](#): > > Methinks they might have a bit more cash to lend out if they didn’t pay themselves quite so much. Communist! EDIT: j/k ---
**Author:** ![JSexton](https://avatars.discourse-cdn.com/v4/letter/j/96bed5/32.png) [@JSexton](https://boards.straightdope.com/u/JSexton)\ **Post date:** [February 3, 2009, 11:36pm UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/4 "2009-02-03T23:36:40Z")
> [@Tuckerfan](#): > > I’ve heard that the average annual salary for the banking execs is something like $263 million. Methinks they might have a bit more cash to lend out if they didn’t pay themselves quite so much. I’m okay with a salary structure commensurate with the industry. I’m NOT okay with bonuses when there is neither profit nor competent leadership. I’m doubly not okay with using my money to pay said undeserved bonuses when that money was supposed to be helping homeowners avoid foreclosure and keep the banks lending money. ---
**Author:** ![accidentalyuppie](https://avatars.discourse-cdn.com/v4/letter/a/59ef9b/32.png) [@accidentalyuppie](https://boards.straightdope.com/u/accidentalyuppie)\ **Post date:** [February 4, 2009, 12:07am UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/5 "2009-02-04T00:07:52Z")
> [@Tuckerfan](#): > > I’ve heard that the average annual salary for the banking execs is something like $263 million. Methinks they might have a bit more cash to lend out if they didn’t pay themselves quite so much. Not quite, the 2007 salaries for the top dozen or so in 2007 were in the 40 -55 million dollar range. Still too much, though. As for where the bailout money went, the answer is easy…down the same black hole all the money they lost fell into. The result is exactly what you would expect when you tranfuse blood into a patient, if you can’t figure out why the patient is bleeding and stop it, all the blood you pour in just goes down the drain. ---
**Author:** ![Fish](https://avatars.discourse-cdn.com/v4/letter/f/bc8723/32.png) [@Fish](https://boards.straightdope.com/u/Fish)\ **Post date:** [February 4, 2009, 12:09am UTC](https://boards.straightdope.com/t/banks-blame-government-for-lack-of-lending/484270/6 "2009-02-04T00:09:33Z")
Income is not necessarily salary. What’s the average total compensation package including benefits?