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Stiglitz Urges Banks to Mend ‘Bad Activities,’ Return to Lending

U.S. banks have gotten out of the business of providing capital to small businesses and need to be redirected toward that mission as the nation recovers from the coronavirus pandemic, Nobel Prize-winning economist Joseph Stiglitz said.

“The problem is, the banks over the last 30 years have focused their attention on things like issuing derivatives, CDSs, trading, commodities: They found a lot more lucrative ways of making money,” Stiglitz said in an interview Tuesday on Bloomberg Television Tuesday with Tom Keene and Lisa Abramowicz. Sitglitz was referring to credit-default swaps