Following reports that the economic recovery is likely to be sustainable, the government has decided to withdraw its backing of Citigroup Inc by selling its stake in the company. The Obama administration stepped in with a massive bailout program to keep the bank afloat during recession, when there was a lot of pressure on many businesses and several were forced to close down. [Read more…]
700 Banks Still Can’t Give Out Loans
The GDP numbers may show that the economy is out of recession and the worst of the crisis is behind us, but most of the banks in the country are not out of trouble yet.
According to the latest report on the health of the banking system from the Federal Deposit Insurance Corporation, or FDIC, more than half of the banks in the country are not being able to give out any new loans. The problem is that bad loans on the books of these banks are constantly rising. With their interest income drying up, they don’t have any money to lend to new customers and are just waiting anxiously for things to improve. [Read more…]
