Behind The Money

By John Melloy, Executive Producer, Fast Money
CNBC

Banks are finally opening up the books in the aftermath of the credit crisis with corporate lending surging to the highest since just before one of the darkest periods in our financial history. What’s unclear is whether this lending to corporations is a precursor to financial institutions extending loans to consumers, a boost this economy could use.


Global corporate loan volume hit $1.64 trillion worldwide in the first half of 2011, a 50 percent jump from a year ago and the highest since more than $2 trillion in the first half of 2007, according to Dealogic. The Americas accounted for more than half of the volume and JPMorgan (JPM) was the leading lender, said the research firm.

“Corporate loan growth leads to more business activity, which leads to more jobs, which leads to more consumers spending, which leads to stronger housing market, which leads to a higher GDP,” said Mitch Goldberg, President of ClientFirst Strategy.

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