Today, due to the timely loans from the American people, our financial system has stabilized, the stock market has sprung back to life, our economy is growing, and our banks are once again recording profits. A year ago, many doubted that we would ever recover these investments, but we've managed this program well. This morning, another major bank announced that it would be repaying taxpayers in full, and when they do, we'll have collected 60 percent of the money owed -- with interest. We expect other institutions to follow suit, and we are determined to recover every last dime for the American taxpayers.

So my main message in today's meeting was very simple: that America's banks received extraordinary assistance from American taxpayers to rebuild their industry -- and now that they're back on their feet, we expect an extraordinary commitment from them to help rebuild our economy.

That starts with finding ways to help creditworthy small and medium-size businesses get the loans that they need to open their doors, grow their operations, and create new jobs. This is something I hear about from business owners and entrepreneurs across America -- that despite their best efforts, they're unable to get loans. At the same time, I've been hearing from bankers that they're willing to lend, but face a shortage of creditworthy individuals and businesses.

Now, no one wants banks making the kinds of risky loans that got us into this situation in the first place. And it's true that regulators are requiring them to hold more of their capital as a hedge against the kind of problems that we saw last year. But given the difficulty businesspeople are having as lending has declined, and given the exceptional assistance banks received to get them through a difficult time, we expect them to explore every responsible way to help get our economy moving again.

Read it all.

Filed under: * Economics, Politics • Economy • The Banking System/Sector • Politics in General • Office of the President • President Barack Obama

1. Bystander wrote: You will notice if you have CDs, that your earnings are down 80% from 3 years ago. Yea the banks are doing fine-we’re getting screwed. Also the Pres failed to mention “contributions” to AIG (120 billion), GM and Chrysler (90 billion). None of this looks to be coming back. By the time this fiscal year ends, we will be 14 trillion in the hole, if health care doesn’t pass.  Check out the article below in the Wall Street Journal. OPINION DECEMBER 5, 2009 Requiem for the Dollar By JAMES GRANT December 14, 10:37 pm | [comment link]

2. Septuagenarian wrote: The banks love this. With the prime arbitrarily set by the FED at “near 0%”, they can borrow money, turn around and buy Treasuries with higher return rates—hence profit from the scheme. Meanwhile us poor slobs are seeing returns of less than 1% on money market, savings and checking accounts. After all, why should banks borrow from us if they can get it from the FED free? December 15, 9:29 am | [comment link]

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