Bank lending plunges again

Bloomberg reports banks provided $79.6 billion of syndicated loans in the three months of 2009. That's a 61 percent drop from $203.2 billion a year earlier, according to data compiled by Bloomberg. For some perspective, volume hit $446.4 billion in the first quarter of 2007. Of course that was an entirely different market.

So what to make of this? Some might be inclined to criticize the banks for resisting some very reasonable steps by the U.S. government to boost lending. But we've maintained here that boosting lending is not a snap. This is about the worst possible market into which you can provide credit. While more lending would help the economy, you just can't throw out your standards. That said, I have to think we'll see an uptick soon in corporate loans. In general, rates are really favorable, which opens up possibilities. For example, if banks could some how unlock the jumbo refi market, they'll be in good shape.  

For more:
- here's the Bloomberg article

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