⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐
The Washington Independent
The Washington Independent

Banks Seek to Head Off Regulation With PR Offensive

After President Obama called the heads of 12 of the largest banks into his office to lecture them about not lending enough to small businesses, the message was

Susan Murillo
News
Last updated: Jul 31, 2020 | Mar 06, 2010

After President Obama called the heads of 12 of the largest banks into his office to lecture them about not lending enough to small businesses, the message was clear: It’s time to get to lending, or the government will get to regulating. So while banks are busy lobbying themselves out of regulation and back into moral hazard, they’re also launching a huge public relations offensive to convince the public that they really are lending to small businesses.

JPMorgan Chase is running newspaper advertisements in major media markets — not an inexpensive endeavor — touting its “Helping Small Business in Even Bigger Ways” campaign that will increase its loans to “small” businesses from $6 billion to $10 billion in 2010. Unlike the federal government, which defines small businesses as those with fewer than 500 employees, Chase will define them as companies with less than $20 million in revenue. Apparently, that’s “small” by Chase standards.

Huntington Bancshares will up its small business lending to $4 billion over three years, offering $1.2 billion in new business loans in 2010, up from $890 million in 2009. Well Fargo plans on increasing its small business lending by 25 percent over 2009 to a total of $16 billion.

But according to June 2007-June 2008 data from the Small Business Administration — which already showed a slowdown in lending rates — for all the institutions, even their increased lending will be lower than in previous years. The SBA considers business loans of under $100,000 to be “microlending” loans, and loans of between $100,000 and $1 million to be larger small business loans, figuring that, on the average, they square with the definition of a company of 500 employees or fewer. Their data shows that, between June 2007 and June 2008, Chase made $25.7 billion in small business loans, with $15.5 billion in microloans and $10.2 billion in loans to larger small businesses. Huntington made $4.6 billion in small business loans in that time period, offering its clients $679 billion in microloans and $3.9 billion in larger small business loans. Wells Fargo loaned $27.2 billion to small businesses in that same period: $10.1 billion in microloans and $17 billion in larger small business loans.

Public relations initiative aside, the banks’ own numbers, combined with the pre-crash data, show that small business loans fell off dramatically during the crisis — despite the public bailout of Wells Fargo and Chase (among others). Those two banks alone, it is worth remembering, raked in nearly $8 billion and $11.7 billion, respectively, in profits for 2009. They can put whatever spin they want onto their efforts to ramp up small business lending but the truth is that they have no intention of loaning out as much money in 2010 as they did in 2007 or 2008.

Susan Murillo | Susan has been interested in real estate since she was a child in Halifax, Nova Scotia. Susan had always wanted to pursue a direction that would encourage her to support others, and she discovered her true calling in real estate, where she could serve her clients and direct them through one of their most significant investments. Shannon has been involved in the selling and distribution of one billion dollars in real estate in Western Canada over the last ten years.

Related

$1.3 trillion in federal spending unaccounted for, report finds

Despite calls for independent bodies to keep government accountable, the Sunlight Foundation’s most recent Clearspending report has found the federal

$1.89 billion given to states to fight HIV

The federal government Monday announced more than $1.89 billion in funding to states to fight the HIV epidemic with access to care and with more cash for the failing AIDS Drug Assistance Program. According to an HHS press release , $813 million of that money will go directly to the ADAP programming. An additional $8,386,340 will be issued as a supplement to 36 states and territories currently facing a litany of unmet needs and access issues.

1 Brigade and 1 Battalion

ISTANBUL – It’s 10 p.m. in the lowest level of the Istanbul airport. In 20 minutes I’ll be allowed to board my plane to Kabul, bringing me to the

1. Brian Schweitzer

As governor of Montana, Schweitzer doesn’t represent one of the most highly populated, high-profile electoral states in the country. But this

#1 in Conspiracy Theories

Andrew Young’s tell-all biography of John Edwards, hitting shelves next week, is surging in one Amazon.com category in particular. #1 in Conspiracy

$1 Million for Toomey

Pat Toomey, the former Club for Growth president and leading Republican candidate in Pennsylvania’s 2010 Senate race, has announced a $1 million haul in the

$1 Trillion for Fannie and Freddie?

That is the worst-case scenario, according to Egan-Jones Ratings Co., quoted in a Bloomberg article making the rounds. The agency says that if home prices

$1.3 Million for Brown

The GOP’s candidate in the Massachusetts special election raised more than one million dollars -- double the goal -- in a 24-hour moneybomb on the Ron Paul

Ten Loopholes That Can’t Make It Into FinReg

Dan Pfeiffer, the White House communications director, wrote a blog post that lists the loopholes lobbyists most want inserted into Sen. Chris Dodd’s (D-Conn.)

Bachmann uncomfortable over earmarks ban

Republicans appear to have boxed themselves into a corner with their portrayal of earmarks as wasteful spending, as many of them have backed a moratorium on

Troubled mine holds hope for U.S. rare earth industry

China currently controls 97 percent of the world’s rare earth production. The Mountain Pass Mine could change that -- if it can overcome serious environmental concerns.

© Copyright 2022 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com

⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐