Restricted Commerical Lending as of 1/1/2010?

Was sent this article yesterday.
Far-Reaching Decision of the Federal Reserve

The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance.

Can anyone here offer any additional insight (confirmation/denial) regarding the radical information contained in this article? If this information is correct, then I am thinking I need to get my rabbit pens, rabbits, and seeds in order.

i would take this with a grain of salt

intel source in the banking cartel?

We'll see if there's any veracity to this. I've placed calls to my banking sources regionally.

The scary thing is this sounds so absolutely plausible. Restrict lending to this extent will make our country run by Fortune 500's -- they're the only ones with the collateral and cash to get loans. Small business can kiss it by the wayside.

And forget about commercial -- or even residential -- development. Not that it's needed really.

does anyone really think the administration wants to destroy small business?

you are crazy IMO, but I look forward to a legit answer if one is ever provided

Originally posted by GreenBicMan
does anyone really think the administration wants to destroy small business?

you are crazy IMO, but I look forward to a legit answer if one is ever provided

of course the administration does not desire to destroy small business
or the anticipated 'green' start ups. (which won't be happening if this action is the new protocol)


but i recall just last week where 'GS'=GoldmanSachs has promised to begin a Private small business fund by contributing $500Bn over 10 years...
(ostensibly to 'make-up' for any 'wrongs' they committed in this Crisis)

And now this rumored tightning of small business loans by way of ratcheting up the requirements for a loan as of 1-1-2010.
? wonder if the SBA will get TARP funds to keep themselves active ?

There's too much timing coincidence...with the outcome being that 'GS' looks like a upstanding community player.



hmmm,

I heard over the weekend from a Global Capitalist that it is already severely restricted to 90 day terms, and no basically no loans. And significant production halted until the end of fourth quarter next year...

[edit on 30-11-2009 by DChenO]