Mortgage losses spur banks to reduce corporate loans
Banks are significantly reducing forms of credit vital to American companies in the backlash from the subprime-mortgage crisis, and the slowdown threatens to further hamper the U.S. economy. Even healthy businesses are finding it difficult to borrow money as banks, burned by the fallout from looser lending standards, overcorrect and take a much closer look at repayment ability. New York Times, The (07/28)