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No Easy Answer For Why Banks Aren't Lending

Members of the Massachusetts Congressional delegation met in Boston on Monday to hear about how to free up frozen credit markets for small businesses. (Monica Brady-Myerov/WBUR)
Members of the Massachusetts Congressional delegation met in Boston on Monday to hear about how to free up frozen credit markets for small businesses. (Monica Brady-Myerov/WBUR)

The House Financial Services Committee will hear Tuesday from Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke about the controversy over AIG bonuses. But the Obama administration's newest bank rescue plan may take center stage. The administration says the plan will use $500 billion to buy toxic assets and get them off the books of the nation's banks. These assets are blamed for the banking crisis, which has virtually dried up credit.

Some members of the Massachusetts Congressional delegation heard first hand about the impact of the tight credit market at a hearing in Boston on Monday. The Massachusetts Congressional delegation convened this hearing after their constituents told them that many small businesses still can't get loans. Congressman Barney Frank, chair of the Financial Services Committee, addressed the panel of regulators and bank representatives. He told them he wants to get to the bottom of the problem.

This program aired on March 24, 2009. The audio for this program is not available.

Monica Brady-Myerov Twitter Reporter
Monica Brady-Myerov was formerly a report in WBUR's newsroom.

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