Fed’s View That Banks Will Keep Lending to Be Tested by Virus

By Jesse Hamilton
The Federal Reserve has long rejected banks’ claims that regulations passed after the 2008 crisis could deter lending when companies most need money. The coronavirus is threatening to provide a real-life test of who’s right, with grave implications for the global economy. …“Self preservation” is every bank’s priority, said Karen Petrou, a managing partner at Federal Financial Analytics in Washington who advises lenders on complying with rules. “An institution’s first obligation is to save itself.”