Financial Roundup: Banks Not Lending, Frank Summons Chiefs, 3 Banks Shut, No Bonuses
Show me the money: Despite the $400 billion federal bailout to ease credit, bankers continue to tighten lending standards. A Federal Reserve survey showed that 79 pecent of 53 loan officers said they tightened credit over the past three months and 85 percent raised the cost of credit lines. [Source: American Banker]
Frank to summon bankers to Congress -- U.S. Rep. Barney Frank, head of the House Financial Services Committee, will summon the heads of bailout out banks to hearings next week. Frank wants to know how they have used federal money. [Source: Huffington Post]
Three community banks shut -- State and federal regulators have shut down MagnetBank in Salt Lake City, Utah, Suburban Federal Savings Bank in Crofton, Md., and Ocala National Bank in Ocala, Fla. All suffered from bad balance sheets and loan defaults. [Source: American Banker]
PNC reports loss after National CIty takeover -- PNC Financial Services Group reports a $248 million net loss in the fourth quarter largely from taking over Cleveland's National City Bank. Net income for the past year fell to $882 million from $1.47 billion the year before. [Source: PNC]
No bonuses at BB&T -- Winston-Salem, N.C.-based BB&T Corp. is not awarding executive bonuses because it missed financial targets. [Source: Associated Press]
And none at Huntington, either -- Huntington Bancshares Inc. of Columbus, Ohio won't be giving any bonuses or financial incentives to employees to cut costs. [Source: Huntington Bancshares]
Citi may stiff Mets -- Twice-bailed-out Citigroup is looking for ways to get out of a $400 million marketing deal with the New York Mets. [Source: Wall Street Journal]