If you've been following the soap opera known as the Troubled Asset Relief Program (TARP), you know that the government is complaining that banks aren't increasing their lending enough, despite big infusions of government cheese. Well, now the banks are revealing what's stopping them from lending more -- the government.
Bear with me now. The banks claim that they want to lend, but the government is making them hold onto more reserves -- in other words, making sure that they stay solvent -- while at the same time requiring them to lend primarily to creditworthy borrowers. The nerve of that Uncle Sam!
Personally, I think they have all just gotten a bit lazy. After all, banks from Citigroup
Now it's time to get back to the basics and do what companies in other industries, from Kellogg
On The Motley Fool's CAPS service, even the more favored banks like Wells Fargo and Bank of America
Further financial Foolishness:
Fool contributor Matt Koppenheffer owns shares of Bank of America, but he does not own shares of any of the other companies mentioned. Bank of America is a former Motley Fool Income Investor pick. The Fool's disclosure policy has never once been caught with its pants down. Of course, it doesn't actually wear pants …
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