FINANCE – WHY SMALL BUSINESS CAN’T GET BANK LOANS

One and a half years after Uncle Sam bailed out the nation’s big banks with $700 billion dollars of our money, small and home business have a hard time getting loans. It could be because the banks are in trouble; according to the independent rating firm of Weiss Financial 2,259 US banks with 43.8% of the industry’s total assets have a Rating of D+ (weak) or lower.

Some 1.5 million subprime and special mortgages come due in the next few years, making the financial situation as volatile as the recent mortgage crash.

It is no wonder banks like Bank of America (D rating by Weiss) and Citibank (D-) want the Feds to suppress the findings of independent financial raters. I like the independents since

The Government sanctioned rating cartel (Moody, S&P) totally mis-rated the mortgage industry