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Unformatted text preview: paperwork involved. The program was supposed to end on March 31, but the Treasury Department near the end extended the deadline to May 16. Questions: 1. Why did the administration push this project and why did they extend it? Didnt we learn from an earlier WSJ article that the vast majority of small businesses say they had all the funding they needed? 2. Why have only about of the funds been borrowed? 3. Why would banks borrow from the Treasury at rates of 1-5% and fill out a lot of paperwork when they can borrow in the federal funds market, from the discount window, or liquidate excess reserves at lower interest rates and with less paperwork? 4. Do you predict that many more banks will participate, now that the Treasury has extended the program?...
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- Spring '11