What Killed Bear, Lehman Is What the World Needs

Report finds that bailout funds have failed to jolt banks into boosting lending

(AP) - The 20 largest banks that received billions in US government rescue funds slightly reduced their lending to consumers and businesses in the last quarter of 2008, the government said yesterday. Banks cut their mortgage and business loans by a median of 1% each, while credit card lending rose by a median of 2%. More»

(NEWSER) - For some, 2009 may be remembered as the year of the Ponzi scheme: Last year, federal regulators prosecuted 13 such scams, but in just the first few months of this year, they’ve already filed 22 cases, reports ABC News. One recent bust is Long Island's Peter Dawson, who stiffed fellow churchgoers, including a man bedridden with lupus and behind on his mortgage payments. More»

Analysis of gov't data reveals sources of the economic meltdown

(NEWSER) - Some 21 of the top 25 subprime lenders that triggered the global economic collapse were either owned or financed by banks that ended up needing bailouts, an analysis by the Center for Public Integrity finds. Among the backers, who make huge profits on the subprime business, were Lehman Brothers, Merrill Lynch, JPMorgan, Citigroup, Goldman Sachs, and AIG. More»

Data will show potential losses in specific loan categories

(NEWSER) - The US will learn the fiscal health of its 19 biggest banks Thursday, when the Federal Reserve and Treasury release the results of the “stress tests,” the Wall Street Journal reports. Delayed somewhat, the results will contain potential loss estimates in specific loan categories for each bank, and aggregate data to give an overall picture of the banking system’s health. More»

Mid-size cities do better in crunch, have seen lending increase

(NEWSER) - While big cities and rural areas have taken a beating as the financial crisis unfolds, many mid-size cities have seen consumer lending increase, indicating an economic resilience that other areas lack, the Wall Street Journal reports. In cities with populations around 400,000—like Huntsville, Ala.; McAllen, Texas; and Provo, Utah—banks are lending as usual, pushing consumer loan balances up 10% or more from last year. More»