banks and thrifts missed making a May 17 payment to the U.S. government under its main bank bailout program, signaling a rising number of lenders are struggling to meet their obligations.
When you consider the majority of repayment of TARP was a product of secondary issues to the public the landslide majority of banks have not paid back TARP, let alone paid the interest due. The public, not the banks have made the repayments so loudly pandered by MOPE ( Management of Perspective Economics).
Jim
A breakdown of the credit of all commercial banks for May 2010 reveals why banks are struggling to repay TARP. Commercial and Industrial loans (business loans) and Real Estate loans continue to not only contract but also shrink in size. Business and real estate loans have fallen from 15.5% and 41.5% in 2009 to 13.6% and 40.2% in 2010, respectively. Also, cash assets have once again up ticked in May 2010. Consumer and credit card loans are the only series expanding from depressed levels. The consumer series represent only a small percentage of total bank credit.
Total Bank Credit Table:
Source: cnbc.com
0 comments:
Post a Comment