House Panel Raps Loan Policies of Bank Regulators
Federal banking regulators came under sharp criticism in Congress on Thursday for allowing banks to make too many risky loans to high-flying borrowers such as Donald J. Trump while squeezing small businesses out of the credit market.
At a House Banking Committee hearing, lawmakers expressed concern that a growing proportion of commercial bank assets are either not earning money or are invested in questionable real estate holdings.
The criticism reflects increasing concern that the same factors responsible for the collapse of the savings and loan industry could cause similar problems for the nation’s commercial banks.
Banking Committee Chairman Henry B. Gonzalez (D-Tex.) criticized federal regulators for not being frank about current practices.
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