Connecticut governor asks banks to help small businesses

Is this not how all of this economic strife started? Connecticut’s Republican governor, M. Jodi Rell, wants local community banks to contribute $1 million each into a lending pool that will provide loans to small business.

Here is part of the story from today’s Hartford Courant.

Gov. M. Jodi Rell announced a plan Thursday to help maintain a free flow of credit in Connecticut, including a request that banks statewide contribute $1 million apiece for a lending pool for small businesses.

About 40 banks are expected to participate, and some may deliver more than $1 million.

“Our banks are strong and they are lending money and that’s good news,” said Rell, who met with top bank executives from across Connecticut in Hartford to discuss the state’s economic conditions amid the worldwide financial crisis.

Unbelievable. There is a reason why the local community banks have been left untouched by the current financial crisis.

On Oct. 6, I posted Your local bank is in fine shape, thank you, and I quoted from an AP piece on the Courant. Bill McGurk from Rockville Bank said it best.

“Community banks give to borrowers who can pay us back.”

Why would we want to drag the local community banks into this situation? Makes zero sense to me.