Classified Assets Stymie Lending, M&A

October 2011
Mergers & Acquisitions Report;10/10/2011, Vol. 24 Issue 41, p1
The article reports on the hard-line approach to classifying loans adopted by bankers as a result of stricter regulations. Such approach, in effect, delays an economic recovery for the U.S. According to bankers, they are implementing such approach to businesses suffering from limited cash flow. Some even admit that they are playing safe and tend to skip over risk categories. They add that an over-abundance of classified loans prevents them from making loans or pursuing acquisitions.


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