Financial Times FT.com

Efforts to plug funding gap could create two-tier market

By Aline van Duyn

Published: February 13 2009 02:00 | Last updated: February 13 2009 02:00

One question kept recurring during this week's grilling in Washington of Wall Street's top chief executives: why, when banks have received billions of dollars of taxpayers' money, is it harder for people to borrow?

Despite assurances from the bank chiefs that lending continues - and in some cases has increased relative to last year - the reality is that, even if all the money received from the government is lent, the availability of credit will remain tight.

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