 |
         
|
CBS' Anthony Mason explained Thursday how the Federal Reserve's 0% interest rates enable the major banks to make free money, lending the central bank's funds out to customers at 3%. Now that sweet deal is turning into profits. Mason reported on JP Morgan Chase, Wells Fargo and Goldman Sachs. CBS' Kelly Wallace and ABC's David Muir now cover the next bailout recipient, Citigroup, which was $1.6bn in the black in the first quarter of this year. Does that mean that the banking crisis is over and the Treasury Department's TARP funds can be repaid? Not so fast. CBS' Wallace found that an increase in mortgage lending has not been accompanied by car loans, student loans and small business loans: "It is still difficult for banks to sell their consumer loans to other investors--so banks are being choosier about who they lend to." ABC's Muir pointed to the "changes in accounting rules" that turned Citigroup's red numbers black: "Out of the woods? Not even close!"
You must be logged in to this website to leave a comment. Please click here to log in so you can participate in the discussion.
