Top TARP recipients extended $245 billion in new loans in Dec and January [View All]

[Aloha Spirit]

Here's a summary of lending trends as reported at financialstability.gov (updated yesterday)

"Summary Analysis: Decemeber 2008 – January 2009
Notwithstanding deteriorating economic conditions through January 2009, the survey of the top 21 bank recipients demonstrates that banks continued to originate, refinance and renew loans in the period from December 2008 to January 2009. Lending levels increased from December primarily in the consumer lending categories which was driven by attractive mortgage rates and seasonal demand factors. The commercial lending segment remained constrained as demand for additional debt remains weak...."

http://www.financialstability.gov/impact/surveys.htm

...and...

Here's what the GAO says about the state of lending by TARP recipients based on the Treasury's reports: (from today)

"....Some indicators revealed that the cost of credit has increased in interbank and corporate bond markets and decreased in mortgage markets, while perceptions of risk have declined in interbank and mortgage markets and risen in corporate debt markets. In addition, although Federal Reserve survey data suggest that lending standards remained tight, the largest CPP recipients extended roughly $245 billion in new loans to consumers and businesses in both December 2008 and January 2009, according to the Treasury's new loan survey. However, attributing any of these changes directly to TARP continues to be problematic because of the range of actions that have been and are being taken to address the current crisis. While these indicators may be suggestive of TARP's ongoing impact, no single indicator or set of indicators can provide a definitive determination of the program's impact."

http://www.gao.gov/products/GAO-09-504


It will be interesting to see how TARP recipients fared in the first quarter.
It's possible that the government's efforts are actually making a significant difference.

(That's right, I'm a freakin' optimist :hi: )