Iowa banking officials are expressing optimism in the federal government’s plan to buy $250-billion of shares in the nation’s leading banks. The president also proposes measures to increase guarantees to help small businesses having trouble with getting cash to cover their day-to-day operations.
Iowa Bankers Association president John Sorenson says the plan should help. Sorenson says the primary impact he sees is hopefully providing stability to the economy and banks, so there’s not a significant downturn in the economy that would hurt banks and consumers. Sorenson says fear of what’s going to happen has led to problems in the financial markets.
Sorenson says he thinks the federal plan will go a long way toward addressing the uncertainty and nervousness in the markets. He says it should calm the fears and open the free flow of credit. Sorenson made his comments on the Iowa Public Radio program "The Exchange."