Lending by the Banks

[chrissa1]

As it's just been announced that interest rates are remaining unchanged and the Bank of England is pouring �125 Billion extra into the pool to stimulate the economy, does anybody really think that the banks will loosen their pursestrings?

The Business Enterprise Scheme seems to have fallen flat on its face with the banks still demanding Personal Gurantees for business loans.

[sandmaster]

Unlikely. The banks are in this position because of bad lending in the past. They need to build up their reserves and improve their share value before things improve.

[factor-fiction]

Sorry infundibulum, maybe I've had a tiring day but I can't follow any of the various statements you are making. I'd be interested to know what you would like the banks to do differently.

[factor-fiction]

Okay infundibulum (interesting name- can't work out where it's from):

When you say money was given to the banks which banks are you referring to?
I didn't think the banking problems were related to the stock market. I thought it was the result of prime lending, defaults and toxic assets.
I'm not aware that they are investing money from the governement into the stock market- but if they have been may have been a good investment as the FTSE has done well over the last month or so.
I'm no supporter of the banks- i just don't go along with your analysis of the situation.