The meeting of bank lenders back in July 1934 seemed routine enough, and the requests for loans were in keeping with the times. There was an application for $100,000 from a St. Paul lumber company, another for $40,000 from a Ladysmith, Wis., manufacturer and one for $3,000 from an Ambrose, N.D., mercantile company, all of which met with the approval of the lending committee and which were remanded for "future investigation that they might give future consideration" to the loans....
Business as usual, except that those lending officers were members of the newly formed Industrial Advisory Committee of the Federal Reserve Bank of Minneapolis. Based on a review of Minneapolis Fed records, those loan requests were likely the first that the bank considered under a rather extraordinary piece of legislation passed the previous month. On June 19, 1934, President Franklin Roosevelt signed a bill into law that added Section 13(b) to the Federal Reserve Act, which authorized the Federal Reserve to "make credit available for the purpose of supplying working capital to established industrial and commercial businesses,"...
If the political environment ever makes a real move to the left, or things become desperate enough, they might try this again.
Then there's always the Federal direct student loan programs, aka hope-based lending.
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