Lack of Credit Is Regulators' Fault: CEO
CNBC Chief International Correspondent
Regulators are to blame for a lack of credit being extended to middle market companies, David Nelsen, CEO of Nelsen Steel Company, told CNBC Friday.
Nelsen, who is also on the board at American Chartered Bank, said that despite complaints from regulators that banks aren't lending enough, one of the reasons for the holdup are the machinations of Washington itself.
Another reason is that regulators are concerned about the credit quality of small and midsize companies. Nelsen made the comments during the annual meeting of the Young President's Organization (YPO).
YPO has 17,000 members, who control companies that generate combined revenues of $6 trillion. The members hail from nearly 200 countries. To be a member, you must have the word chiefin your title, and your company must generate at least $8 million in revenue a year.
For decades these leaders remained very low-profile, shunned media and some jokingly called them a secret society. But for the first time this year the organization is allowing media to attend the conference and given CNBC exclusive access.
Greg McKee, CEO of Akela Pharma, told CNBC that even when a bank is willing to lend money, the due diligence process has become so lengthy and unwieldy, it hurts the ability of companies to grow in a timely manner.