Loans to Business

* With the huge economic problems we have not only in Los Angeles, where unemployment is the highest, but around the world, all I have heard are complaints about the government and President Clinton. It seems nobody ever brings up a subject that bothers me immensely--the banks.

Most banks in the last two years have made more money than most companies. Yet when small manufacturers go to a bank to ask for a loan, they are turned down. In my type of business many companies are moving out of California because of environmental conditions or changing their products from aircraft, automobiles, etc., to a more commercial type of work. This also goes for other small businesses.

The banks will not lend these people a dime unless they are 100% sure the company is in the black financially with no problems whatsoever. If a company has some problems, and it seems we all do, the banks claim the federal regulators are on their case not to loan any money. Yet they are ready to risk $50 million or so on developers or buildings that eventually go broke. I think this is wrong, morally and otherwise. I also think that the regulation bit is not all true. I have heard that banks would rather buy bonds than loan money; there are big differences in the charges banks make to consumers from 20 to 30 years ago.

MORT ROGO

Los Angeles