New York, NY —
JPMorgan Chase's CEO says his bank is lending despite this tough economic environment, and blames the credit crisis on nervous investors. WNYC's Lisa Chow reports.
REPORTER: Jamie Dimon, the head of JPMorgan, says banks are lending even if they're tightening their credit standards. So if banks are lending, why are we still facing a credit crisis? Dimon cited an interesting statistic yesterday at a conference on New York City's economy, saying bank lending only makes up 20 percent of total lending.
DIMON: There's a huge marketplace that's not lending. Money market funds. There was a run on money market funds after September 12, $500 billion came out. How many of you took money out of bond funds, money funds, and moved it into something safer? Raise your hands for a second. It was you.
REPORTER: Dimon said in the last 90 days, JPMorgan lent more than $100 billion in new or renewed credit. The bank has received $25 billion from the U.S. government, under the TARP program. For WNYC, I'm Lisa Chow.