There is plenty of mortgage money around. The majority of lending institutions are sound. The Federal Reserve is lending money to these institutions at a low rate. So why bail out the bad guys? Banks keep purse strings tight in credit crisis - Sep. 25, 2008 The littlest guys are still lending While the credit crisis has shaken Wall Street to its core, the thousands of community banks that make up the lion's share of the nation's banking system remain, to a large extent, quite secure. "Our lending window continues to remain open," said Jonathan Fox, the chairman and CEO of The Fowler State Bank, a Colorado-based bank an hour's drive from Pueblo with about $56 million in assets. Fox admitted that, since the credit crunch began, his bank has taken a harder look at the value of a piece of real estate involved in a loan as well as a customer's income. But he said that his bank, which traces its roots back to 1899, can continue to lend freely because they didn't get caught up in the subprime mortgage market.