If you wanted to see the disconnect between bankers, who have been accused of hoarding money, and businesses that need loans, the Port of Tampa's Cruise Terminal 3 was the place to be Wednesday.
Several hundred business people and politicians gathered inside the cruise terminal in Tampa's Channel District for a forum on the nation's credit crisis. Throughout the discussion, several bankers insisted that banks continue to make loans and that the real credit problem lies with "commercial paper," a type of short-term promissory note, and other forms of credit.
"In reality, commercial banks are doing more than their fair share," said Don DeFosset, a director of Regions Bank.
"Banks are in the business to lend," added Anthony DiMarco, an executive vice president at the Florida Bankers Association. "It's how we make money."
Some people didn't seem to agree with that, though. When moderator Keith Cate of WFLA, News Channel 8 asked whether people had been having problems with their banks, dozens of hands shot up. WFLA and The Tampa Tribune are owned by the same company.
Several bankers acknowledged that money is tighter, but who is to blame and whether banks have become too restrictive were hotly debated Wednesday. DiMarco said bank regulators are being too aggressive in demanding that banks meet strict requirements for capital. That means banks have less to loan, he said.
However, Brian Smith, a managing partner at LCG Capital, a Tampa investment banking firm that helps companies obtain financing, said banks are calling in credit lines or not renewing them even for companies that have strong credit histories.
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