Bank Of America Cancels Lines Of Credit For Contractors
Decision especially harmful to specialty contractors; will reduce and limit credit exposure to commercial contractors; denial of capital may slow efforts of industry's move forward.
Bank of America canceled unsecured lines of credit for some of its commercial contractor clients, according to Julie Westermann, media spokesperson for the Charlotte, N.C.-based bank.
"In light of falling economic conditions, we made a strategic decision to both reduce and limit our credit exposure to commercial contractors," she said. "Our experience tells us that, during periods of economic slowing, our portfolio of commercial contractor loans is very vulnerable to deterioration."