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User Comments (1)
Post a comment| echtogammut on April 10, 2009 1:14 AM | Shocking, a bank can make loans with money that costs them essentially nothing and gets to write off debt without having to book the expense and they make money? Who would have thought? I know Wells Fargo was the only major bank to be declared solvent after this latest fiasco, so why was anyone shocked that they would be making money with free money? I recently applied for a business loan with these guys and while I was chatting with the loan officer about the state of the economy, he said that part of the reason that they were not lending money was due to businesses recently having bad business credit! I looked at him for a long time and said "recently"? If you guys are making loans based on the credit of a company in the last couple of months no one will qualify. I have been having big customers drag out their payments long past due dates and I know must companies are not as forgiving at filing collections notices as I am. I understand that the underwriting on the loan is important for the health of the bank, however banks are ultimately responsible for this fiasco and want them to have to open up their books and have a public audit. I think people are generally smart enough, or at least the media can control them enough that they won't rip their money of banks when they find out how deep the hole is.
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