Bernanke: Banks' tight standards hurting economy - New York News | NYC Breaking News

Bernanke: Banks' tight standards hurting economy

Posted: Updated:
Federal Reserve Chairman Ben Bernanke (Photo: www.federalreserve.gov) Federal Reserve Chairman Ben Bernanke (Photo: www.federalreserve.gov)
WASHINGTON -

Federal Reserve Chairman Ben Bernanke says banks' overly tight lending standards may be holding back the U.S. economy by preventing creditworthy borrowers from buying homes.

Bernanke says some tightening of credit standards was needed after the 2008 financial crisis. But he says "the pendulum has swung too far the other way." He says some qualified borrowers are being prevented from getting home loans.

Bernanke comments to an audience in Atlanta came on a day when it was reported that average rate on the 30-year fixed mortgage fell to a record low of 3.34 percent. Rates have been low all year but have fallen further since the Federal Reserve started buying mortgage bonds in September to encourage more borrowing and spending.

 

Copyright 2012 The Associated Press

  • Local NewsLocal News

  • Thursday, June 20 2013 6:10 AM EDT2013-06-20 10:10:08 GMT
    The driver of the vehicle that left several people injured and a trail of destruction in the area of 2nd Avenue and East 4th Street in the East Village has been arrested.
    The driver of the vehicle that left several people injured and a trail of destruction in the area of 2nd Avenue and East 4th Street in the East Village has been arrested.
  • Exclusive

    Wednesday, June 19 2013 11:04 PM EDT2013-06-20 03:04:17 GMT
    Do you have the X Factor? The new panel of judges is on Long Island this week looking for contestants.
    Do you have the X Factor? The new panel of judges is on Long Island this week looking for contestants.
  • 1961 – 2013

    Wednesday, June 19 2013 10:55 PM EDT2013-06-20 02:55:03 GMT
    The actor James Gandolfini, best known for his award-winning portrayal of New Jersey mobster Tony Soprano in the HBO series "The Sopranos," has died in Italy. He was 51.
    The actor James Gandolfini, best known for his award-winning portrayal of New Jersey mobster Tony Soprano in the HBO series "The Sopranos," has died in Italy. He was 51.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2013 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices