The banks have the cash, but why is everyone surprised they're not lending?
(NEWSER) - Not too long ago, critics from left and right were clamoring for Hank Paulson to abandon his plan buy up toxic mortgage-backed securities at auction to unlock credit markets. Instead, they argued, the government should give money directly to banks for them to lend. Too bad Paulson listened, writes Steven Pearlstein in the Washington Post, because he's blundered away $125 billion. Now these same folks are shocked that banks are not lending, but paying dividends, paying off executives or building their capital reserves. More»
