If Foreigners Are Lending, Can U.S. Banks Be Far Behind?

There is now "at least some hope that the worst of the bank credit crunch may be over," says William V. Sullivan Jr. of Dean Witter Reynolds Inc. The money-market economist notes that while total commercial bank credit expanded at a modest 3.2% annual rate in September, commercial and industrial loans rose for the first time in six months, hitting a 6.7% annual clip. Indeed, the $3.4 billion gain in the C&I category was the largest in 23 months.

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