Bloomberg Gets Biggest Story of All Backwards, Saying “Banks Lending Least Deposits in 5 Years”

From The Wall Street Examiner Email Bulletins Archive
February 20, 2013 - 7:49pm

This is how Bloomberg reported one of the biggest stories of the year, maybe the biggest, backwards. The biggest U.S. banks including JPMorgan Chase & Co. and Citigroup Inc. are lending the smallest portion of their deposits in five years as cash floods in from savers and a slow economy damps demand from borrowers. The average loan-to-deposit ratio for the top eight commercial banks fell to 84 percent in the fourth quarter from 87 percent a year earlier and 101 percent in 2007, according to data compiled by Credit Suisse Group AG. Lending as a proportion of deposits dropped at five of the banks and was unchanged at two, the data show. Consumers and companies are reluctant to take on risk until they see more signs that business is improving, even as the Federal Reserve maintains near-record low interest rates designed to fuel growth. Putting more of the unused money to work could boost profit and help turn around the U.S. economy, whose 0.1 percent annualized drop in the fourth quarter was its worst showing since 2009. via JPMorgan Leads U.S. Banks Lending Least Deposits in 5 Years – Bloomberg. These deposits aren’t about people taking cash out of mattresses [...]

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