Geithner: ‘Banks Lending More’ vs. Data: Banks Lending Less

  • JJ Hornblass
  • September 11, 2009
  • 0

From the Zero Hedge blog, regarding changes in the Federal Reserve’s balance sheet over the last week:

Total [bank] depository reserves [at the Federal Reserve] increased by $30 billion to $886 billion – the banks are lending even less! Didn’t Geithner in testimony perjure himself by claiming how banks are lending our more than ever during the span of the recession? Exhibit A is just this number, which is the highest since the end of May 2009. The actual deposited cash is likely used by these institutions to purchase Treasurys thereby making the auctions such a sterling success (and, if they have a gun to their head – MBS and Agencies).

Break out the ball and chain, folks.

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JJ started the first iteration of Bank Innovation back in 2007, and has been working on it ever since. He also serves as President & Chief Executive Officer of Royal Media, Bank Innovation’s parent. He founded Royal in 1995 and oversees all aspects of the New York-based diversified media company. Prior to forming Royal, JJ was on the editorial staff of American Banker, the daily newspaper, and worked as an editor of a business magazine in Hong Kong. As a reporter and editor, he has won journalism awards from the National Press Foundation, Newsletter & Electronic Publishers Foundation, and the Reader’s Digest Foundation. He has a BS in Economics from Yeshiva University and a Master’s from the Columbia University Graduate School of Journalism. He was also a Fellow at the University of Wisconsin-Madison Graduate School of Banking. He lives in New York City with his wife, two daughters, and son. He counts among his accomplishments one New York City Marathon, two New York City Triathlons and the 2010 Father’s Day 5K, the first race he ever ran with his daughters. He can be reached at hornblass@gmail.com or 212-564-8972.

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