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Treasury, Fed, FDIC Urge Banks to Start Lending

In its latest attempt to thaw the country's credit freeze, the ""U.S. Department of the Treasury"":http://www.treasury.gov, ""Federal Reserve"":http://www.federalreserve.gov, and ""Federal Deposit Insurance Corporation"":http://www.fdic.gov (FDIC) issued a joint statement yesterday urging banks to start lending again.
""The ongoing financial and economic stress has highlighted the crucial role that prudent bank lending practices play in promoting the nation's economic welfare,"" the agencies said. ""The recent policy actions are designed to help support responsible lending activities of banking organizations, enhance their ability to fund such lending, and enable banking organizations to better meet the credit needs of households and business.""
The statement calls on banks to step up and ensure that the needs of credit-worthy borrowers are met and to continue raising capital to support the nation's financial system. It also calls on financial institutions to take on aggressive loss mitigation and foreclosure prevention strategies and said banks should reassess their incentive and compensation policies.
To read the full statement issued by the three regulators, ""click here"":http://www.fdic.gov/news/news/press/2008/pr08115.html.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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