Lisa Chow is the economics reporter at WNYC. She tries to explore in her stories surprising aspects of New York’s many economies—in plain view or hidden, in neighborhoods or sectors.
Dimon: Banks Are Lending, Not Money Market
Wednesday, February 04, 2009
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.