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To: oldirtybastard who wrote (148443)	2/4/2002 4:23:15 PM
From: Knighty Tin	Respond to of 436258

ODB, yeah, this is another one of those don't tell, don't listen deals. <g>

To: oldirtybastard who wrote (148443)	2/4/2002 4:29:15 PM
From: patron_anejo_por_favor	Respond to of 436258

More string-pushing: nytimes.com February 4, 2002 Fed Survey Finds Tighter Credit By REUTERS Filed at 3:05 p.m. ET WASHINGTON (Reuters) - Banks tightened the reins on consumer and business credit in the three months ended in January, though at a slower pace in some cases than in the prior three months, a Federal Reserve survey released on Monday found. ``The results of the survey suggest some further tightening of standards and terms for loans to both businesses and households, as well as generally weaker loan demand,'' the Fed said in its quarterly poll of senior loan officers at major banks. The survey included responses from officers at 55 major U.S. banks and 23 branches or agencies of foreign banks in the United States. About 45.4 percent of banks responding reported tightening credit standards to large and medium-sized companies, while 54.5 percent said standards were basically unchanged. None reported easing standards. In the previous survey, released in November, the percentage tightening standards was actually higher, at 50.9 percent. Banks were more aggressive in tightening standards on loans to small companies, those with $50 million or less in annual sales. About 41.8 percent of the banks reported tougher credit conditions for these firms, compared with 40.4 percent in the previous survey. RELUCTANCE TO LEND While the Federal Reserve eased short-term interest rates 11 times in 2001, a reluctance to lend by banks may offset some of the boost to the economy from the rate cuts. In the wake of the 1991 recession, banks, under pressure to shore up balance sheets, showed extreme caution in lending, a development some economists believe slowed the economic recovery. But most banks, while feeling the effects of the recession that began last March, are in much better financial shape than in the early 1990s. Now, the problem for the economy may be a lack of demand. ``Large net percentages of domestic and foreign banks continued to report a weakening of demand for (commercial and industrial) and commercial real estate loans; compared with the October survey, however, somewhat fewer banks reported weaker demand,'' the Fed said. On the consumer side, the Fed said U.S. banks, on net, had tightened standards for all types of consumer loans. About 5.7 percent of the banks reported being ``somewhat less willing'' to make consumer installment loans than previously. ``SUBPRIME'' QUALITY HIT The survey also asked banks how their statistical models used to predict consumer credit quality had held up during the economic slowdown. The results were not encouraging. ``Household credit quality generally was somewhat worse than would have been predicted by the banks' credit-scoring models one year ago, taking account of the economic slowdown,'' the Fed said. While conventional mortgage loans were an exception to the trend, worse than expected readings were seen in so-called ''subprime'' credit markets -- loans, mortgages and credit card accounts extended to those with spotty credit histories. ``Among banks that reported worse loan quality than their models had predicted, nearly all claimed that a rise in bankruptcy filings triggered by proposed bankruptcy reform legislation was an important reason,'' the Fed said. That legislation, while close to approval last year, remains stalled on Capitol Hill.