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Shame on big banks for failing to step up at a critical moment: the Covid-19 pandemic
Key Excerpts from Article on Website of The Guardian (One of the UK's leading newspapers)
Posted: April 26th, 2020
https://www.theguardian.com/business/2020/apr/08/big-banks-c...
Our government, in order to save millions of small businesses that face financial ruin caused by forced closings and shelter-in-place orders, has approved $350bn to aid those flailing businesses. In order to get this money to as many businesses as fast as possible, the government decides to ... lean on the already established Small Business Administration (SBA) and its vast network of member banks. They do this with the Paycheck Protection Program (PPP), which was part of a $2.2tn stimulus bill. Just loan these desperate small businesses money, the government tells these banks. Well guarantee it, and even forgive it. Some banks particularly smaller, independent banks ... were the first to process loan applications for their struggling small business customers last Friday when the SBA opened their loan window. And then theres Bank of America, Wells Fargo and other large banks like JPMorgan Chase and Citigroup who have all said not so fast. These banks last week, at such a critical moment, gathered together and decided to slow things down. They limited loans only to customers and credit card holders. They came up with new lending requirements and asked for more documentation over and above SBA guidelines. They capped the amount of loans they would make. Choosing to only favor customers over everyone else, requiring excessive documentation or capping loans was a bad and misguided decision. Not being more proactive in the weeks they had to prepare was poor planning.
Note: For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption and the coronavirus pandemic from reliable major media sources.
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