Thursday, July 15, 2010

Fed Request Bank Leniency For Gulf Residents Effected by BP's (NYSE:BP) Oil Spill

The request came from the Federal Reserve and other U.S. Bank regulators, asking for leniency for those effected by the BP (NYSE:BP) oil spill disaster. With so many people effected in the Gulf region, if banks would be willing to consider waiving late fees and penalties, expedite loans, and ease credit terms it would make a huge difference, said U.S. Banking regulators.

"The regulators encourage financial institutions to work with their customers and consider measures to assist borrowers effected by the situation and its subsequent impact on local communities. Efforts taken by financial institutions to work with their borrowers and customers in effected communities, if conducted in a reasonable and prudent matter, are consistent with safe and sound banking practice," said the Federal Reserve and regulators.

"These measures could help customers recover financially and be better positioned to honor their obligations," they said. There are still many Gulf residents who are concerned about how they will get the money to pay bills and be able to keep their business afloat. Several of the area business are in substantial debt from when Katrina hit and they had to take out loans to cover the cost of damage.

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