Banks May Shun $231 Billion Rollover of U.S. Emergency Loans
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Bank of America Corp. and Citigroup Inc. are among firms planning to repay rather than roll over their share of $231 billion raised under a U.S. loan program meant to help the economy as the business slowdown crimps demand for credit.
Lenders including General Electric Co. and JPMorgan Chase & Co. face deadlines to refinance or repay by the end of 2012, when funds borrowed under the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program mature. The emergency program provided U.S. guarantees to help banks raise money after credit markets froze in the 2008 financial crisis.