A2: Banking

A BusinessWeek article about why banks aren’t lending begins: “Ann Arbor Commerce Bank should be in the mood to lend money. Smack in the middle of an affluent college town, the community bank has largely been spared the economic angst roiling the rest of Michigan and the U.S. The bank, which has $360 million in assets, didn’t make many risky loans, so losses are low and capital is plentiful. But in recent months the bank has politely referred some customers to other lenders. Says CEO Richard Dorner: ‘Capital is tight, and we’re preserving ours.’” [Source]