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Treasury Report: Banks Decrease Lending After Bailout

HeadlineMar 17, 2009

A new Treasury report has found the nation’s largest banks are continuing to reduce the flow of credit to new homeowners and consumers despite receiving hundreds of billions of dollars in taxpayer bailouts. In December, the nation’s twenty-one largest banks lent out $162 billion for first mortgages. Less than half that amount was lent out in January. New home equity credit lines decreased from $15 billion to just $5 billion.

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