Feds Continue To Penalize Banks
Which Only Make Loans To Responsible Borrowers
Maybe it's because President OBAMA is too busy running General Motors, figuring out what kind of cars we may buy, and determining what kind of light bulbs are acceptable to notice something so perverse and stupid it would blow any rational mind.
Believe it or not, the federal government is STILL penalizing financially-healthy banks for insisting that borrowers be credit-worthy! Let me explain.
The Massachusetts-based East Bridgewater Savings Bank has weathered the financial storms of late without major loan delinquencies and a $135 million cash reserve. And their reward for operating at a profit and not granting mortgages to people who cannot afford the payments? Running into trouble with regulators.
The Boston Business Journal reports the bank has been penalized by federal bureaucrats with a "need to improve" rating under the Community Reinvestment Act! The bank has gotten into hot water (meaning they have been given a lower rating by the Federal Deposit Insurance Corporation) for not making loans to sub-prime borrowers.
I brought this anecdote to your attention in case you know someone who blames the private sector for the chaos in the U.S. financial system. It now appears some of the same federal policies which helped bring ruination to big U.S. banks - and ultimately the financial system itself - are still being applied to smaller banks across the nation.
Lee Bellinger's , Publisher Independent Living
Note from Lucy: Is it me, or does it seem like the government doesn't want us to get better? Come on guys, let's fix the problem.....