Tags: Donald | Trump | loans | banks

Trump: U.S. Must Force Banks to Make Loans

By Dan Weil   |   Tuesday, 01 Dec 2009 12:40 PM

Real estate mogul Donald Trump says banks’ unwillingness to lend threatens economic recovery and that the government must force the banks’ hands.

Even if you have a building project in Manhattan that will create jobs and has solid tenants, you’re unlikely to get a loan, he told CNBC.

"The Banks are not loaning money . . . no matter how prime you are, no matter how rich you are, no matter how good your development," Trump said.

Bank loans outstanding fell 3 percent in the third quarter, according to the Federal Deposit Insurance Corp. (FDIC). That’s the biggest drop since the data series began in 1984.

"This economy can never come back until the banks are forced to loan money, and it’s really the money they were given by the government, but they’re not loaning it," Trump said.

The government must do more than beg, he argues.

“Unless the government is going to take very harsh action with the banks and force them to loan money, it’s not going to happen. This economy isn’t going to be coming back very quickly.”

Given this scenario, Trump says it’s a great time to invest in real estate. “You can buy things that are phenomenally priced,” he points out. “We’re buying a lot.”

Trump’s not the only one worried about bank lending. "We need to see banks making more loans to their business customers," FDIC Chairwoman Sheila Bair told reporters.

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Real estate mogul Donald Trump says banks’ unwillingness to lend threatens economic recovery and that the government must force the banks’ hands.Even if you have a building project in Manhattan that will create jobs and has solid tenants, you’re unlikely to get a loan, he...
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