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Banks Not To Blame In Crisis, Official Says

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By MICHAEL SASSO

msasso@tampatrib.com

Published: March 3, 2009

TAMPA - With bankers under fire, the chief executive of the Florida Bankers Association came out swinging Monday against regulators who he said are tying bankers' hands.
Alex Sanchez insisted that banks in Florida are in business to make loans, even if they are getting a bad rap at the moment for allegedly hoarding federal bailout dollars.

"Accusing a banker of not wanting to lend is like accusing a restaurateur of not wanting anyone to eat there," Sanchez told a roomful of businessmen Monday at the University Club in downtown Tampa.

Sanchez, who is based in Tallahassee, was in town for a Greater Tampa Chamber of Commerce luncheon on Florida's banking industry. The luncheon's theme was "Setting the Record Straight," and Sanchez spent the bulk of an hour defending banks.

Among his complaints: the public and media are confusing commercial banks with the Wall Street investment banks, such as the former Bear Stearns, that packaged mortgages into exotic securities.

Even though banks are accused of hoarding bailout money, he said business loans nationally are up by 12 percent and consumer loans are up 9 percent. He didn't have statewide figures.

While he was light on criticism for fellow bankers, Sanchez laid some blame for the credit crisis on overaggressive - and sometimes criminal - mortgage brokers who peddled too-good-to-be-true loans, as well as consumers who were too willing to spend beyond their means.

Meanwhile, teams of bank regulators are visiting banks regularly and watching over their every move, making bankers wary.

Reporter Michael Sasso can be reached at (813) 259-7865.

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