Paying The Price Of Lending Money

Your editorial, "Why can't banks learn their lesson?" (Nov. 7), is not altogether convincing. To lend has always meant to take risks, and banks seem generally to be taking the right amount today. They have a healthy supply of capital and reserves to cover potential losses from increased lending and consumer-loan delinquencies. Nonperforming loans are at historical lows, and growing loan demand has helped put the credit crunch behind us. Given these factors, there is plenty of room for banks to make good loans today, and they are making them.

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