Loans by top TARP banks fall in Jan – US Treasury
The nine top U.S. banks that received government rescue funds in January made the fewest amount of new loans since October, government data showed on Monday.
Loan originations at the nine top banks that received bailout money from the Troubled Asset Relief Program fell to $35.9 billion in January, down $19.3 billion from December levels, Treasury said in its monthly TARP lending survey of the top banks.
It was the smallest amount since October when they hit $41.6 billion. October was the last month that new loans had fallen.
Treasury said the drop in new loans may be partially explained by large increases in originations from November to December 2009.
Lending to small businesses is considered key to helping reinvigorate the economy and expand the job markets.
Loan balances at the nine largest U.S. financial firms that have received emergency government investments rose 2 percent in January from the previous month, Treasury said.
Average loan balances rose by $20.3 billion to $1.064 trillion, the Treasury said.
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