Comments on: The Idea That Banks Aren’t Lending Anymore Is Ridiculous http://www.peridotcapitalist.com/2009/01/the-idea-that-banks-arent-lending-anymore-is-ridiculous.html Stock market and investing blog published by Chad Brand, Founder/President of Peridot Capital Sat, 11 Feb 2012 23:26:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bobby http://www.peridotcapitalist.com/2009/01/the-idea-that-banks-arent-lending-anymore-is-ridiculous.html/comment-page-1#comment-1290 Bobby Fri, 23 Jan 2009 05:19:27 +0000 http://www.peridotcapitalist.com/?p=1103#comment-1290 Ruben, I wonder if there is no loans happening because of no money are available or because they're locked out of fear. I don't know the true answer, probably a bit of both, but I lean towards the second. Banks went from over-relaxed mode to over-protective mode and now aren't investing even where they have to. A guy I know has a 10-year old business that is absolutely recession proof - his customers have actually increased lately - and he still doesn't qualify for, like 4th or 5th loan, althogh he's never been late with any of the prior ones and, given the nature of the business, very unlikely to be late in foreseeable future. Honestly, I think this is a great time to start a banking business, if you have the capital. And from what I hear some small regional banks are taking advantage of this situation and actually doing very well. In 5-10 years the banking landscape may not be as different as many are predicting now...there may be some new players that we haven't yet heard of. Ruben, I wonder if there is no loans happening because of no money are available or because they’re locked out of fear.

I don’t know the true answer, probably a bit of both, but I lean towards the second.

Banks went from over-relaxed mode to over-protective mode and now aren’t investing even where they have to.

A guy I know has a 10-year old business that is absolutely recession proof – his customers have actually increased lately – and he still doesn’t qualify for, like 4th or 5th loan, althogh he’s never been late with any of the prior ones and, given the nature of the business, very unlikely to be late in foreseeable future.

Honestly, I think this is a great time to start a banking business, if you have the capital.

And from what I hear some small regional banks are taking advantage of this situation and actually doing very well.

In 5-10 years the banking landscape may not be as different as many are predicting now…there may be some new players that we haven’t yet heard of.

]]> By: Rubens http://www.peridotcapitalist.com/2009/01/the-idea-that-banks-arent-lending-anymore-is-ridiculous.html/comment-page-1#comment-1289 Rubens Fri, 16 Jan 2009 17:22:43 +0000 http://www.peridotcapitalist.com/?p=1103#comment-1289 If we are talking about mortgages, I can assure you that there is very little lending going on, especially jumbo. My credit score can be considered a notch above prime and I am having difficulty refinancing. I tried to take advantage of these seemingly low fixed mortgage rates but my take is that those rates are fictitious and don't reflect reality. I'm talking from personal experience and that of a couple of friends of mine in similar position (high credit scores). Another anecdotal evidence comes from my contacts at the U.S. branches of some large European banks. There is huge internal competition for capital within the banks, there are potential deals out there but unfortunately many projects and companies are not being funded. Each deal is being scrutinized like never before because there is more demand for loans than available capital (supply of loans) from the banks. The credit crunch continues. Banks need more help from the governments. If we are talking about mortgages, I can assure you that there is very little lending going on, especially jumbo. My credit score can be considered a notch above prime and I am having difficulty refinancing. I tried to take advantage of these seemingly low fixed mortgage rates but my take is that those rates are fictitious and don’t reflect reality. I’m talking from personal experience and that of a couple of friends of mine in similar position (high credit scores).

Another anecdotal evidence comes from my contacts at the U.S. branches of some large European banks. There is huge internal competition for capital within the banks, there are potential deals out there but unfortunately many projects and companies are not being funded. Each deal is being scrutinized like never before because there is more demand for loans than available capital (supply of loans) from the banks. The credit crunch continues. Banks need more help from the governments.

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