# Prof. Roy Smith on the impact of high bank penalties on economic growth

1 Faculty News July 10, 2014 ![Yahoo logo](/sites/default/files/styles/246w/public/assets/images/yahoo.jpg?itok=UzShvj6e)>

Excerpt from [Yahoo! News](http://news.yahoo.com/u-s--bank-penalties-now-exceed-the-gdp-of-most-countries-160353393.html) -- "At the same time, however, the government is putting the squeeze on the very same banks it wants to ease up on lending standards and provide more credit to businesses and consumers, to help boost spending and growth. 'Banks are not providing the support we need for the economic recovery,' says [Smith](http://www.stern.nyu.edu/faculty/bio/roy-smith). 'There may be a political value to punishing the banks for reckless behavior, but there has to be some sense of political closure on this.'"

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