Undercapitalized banks stand to benefit from $1T infusion
(NEWSER) - Banks aren’t lending, and to change that the government is propping up not just the banks but also the vast, largely unseen financial system that fuels them, the New York Times reports. Banks rarely keep the loans they make anymore; instead, debt is packaged into securities and sold, generating capital that funds more lending. The market for those securities has collapsed, but the Obama administration has a $1 trillion plan to revive it. More»
