Regulators tell banks: do what we say, or else. If there is any doubt that the federal government has taken over (nationalized, socialized) the nation's banking system, consider these headlines from a joint statement this morning from the FDIC, the Fed, and the Treasury.
1) urge banks to make "economically viable & appropriate" loans
2) warn banks not to tighten lending standards too much
3) urge banks to strengthen capital positions
4) warn banks they will take action if dividend policy is inappropriate
5) press banks to modify mortgages
"Urge," "warn," and "press." They are not asking, they are telling, and it's clear they will exercise their power if the banks do not obey.
- Regulators Pushing Banks To Step Up Their Lending
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