To Lend Or Not To Lend …

Being a banker these days has to be one paranoid experience e. On the one hand you have most of
Congress, the Fed and the administration telling you to lend, lend, lend and then today the Office of the Comptroller of the Currency told its examiners to get tough with the banks they examine.

The OCC says it is seeking to stabilize more banks through the use of cease and desist orders and other measures meant to enhance capital. Of course, if you happen to be sitting in your cozy corner office what this really means is that the examiner is going to walk in the door loaded for bear. Odds are you will probably err on the side of less lending rather than more since these examiners represent a much more proximate danger than say Barney Frank.

So the next time you hear the blovation about banks not lending after all the money we’ve given to them, remember that another part of the government is saying don’t you dare.


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