Obama tells US banks to increase lending to SMEs
After the $700 billion (£430 billion) bailout of the banking industry, US President Barack Obama has now asked banks to do their part and increase lending to small and medium-size businesses.
A meeting yesterday with executives from Goldman Sachs, JP Morgan Chase and Citigroup, among others, came a day after Mr Obama said he had not run for office to help out “a bunch of fat cat bankers on Wall Street”.
After Monday’s meeting, the President said: “America’s banks received extraordinary assistance from American taxpayers to rebuild their industry, and now that they’re back on their feet, we expect an extraordinary commitment from them to help rebuild our economy.”
The meeting came on the same day that US banking giant Citigroup said it will repay $20 billion of funding it received via the Government’s Troubled Asset Relief Program (Tarp).
Another major US bank, Wells Fargo, also announced it had reached a deal to repay the $25 billion it had received in Government funding.