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Watchdog says bad assets still threaten banks (lots of risky loans of 'uncertain value')
AP ^ | 08/11/09 | Daniel Wagner,

Posted on 08/12/2009 1:40:53 AM PDT by TigerLikesRooster

Watchdog says bad assets still threaten banks

Bad assets still threaten bank stability, congressional watchdog says

By Daniel Wagner, AP Business Writer

On Tuesday August 11, 2009, 12:07 am EDT

WASHINGTON (AP) -- Despite signs that the financial system has stabilized, banks remain threatened by billions of dollars of bad loans on their balance sheets, and more could fail if the economy worsens, a congressional watchdog reports.

In its latest assessment of the $700 billion financial system bailout, the Congressional Oversight Panel warns that banks still hold many risky loans of uncertain value. If unemployment rises sharply or the commercial real estate market collapses -- as many economists fear -- the banking system could again lose its footing, the panel says in a report to be released Tuesday.

(Excerpt) Read more at search.finance.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bailout; bank; banking; riskyloans; tarp
'uncertain value' = zero value
1 posted on 08/12/2009 1:40:53 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

Ping!


2 posted on 08/12/2009 1:41:28 AM PDT by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster
Whats the worry?
ZERO can print MO $$
Problem Solved
Next! ! ! ! !
3 posted on 08/12/2009 1:54:15 AM PDT by DeaconRed (I have an 8th Grade Education and a Good Christian Raisin- I can sse right through ZERO)
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To: TigerLikesRooster

Many of the major financials were insolvent last year and some still are, even after all the bailouts.


4 posted on 08/12/2009 2:02:49 AM PDT by Proud_USA_Republican ("The problem with socialism is that you eventually run out of other people's money.")
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To: TigerLikesRooster

this is what de-leveraging looks like. and it’s a good thing - insofar as it’s the proper thing to happen after a financial bacchanalia.


5 posted on 08/12/2009 2:02:55 AM PDT by the invisib1e hand
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To: Proud_USA_Republican

They never fixed the underlying problem in the first place. Someone needs to tell Bernanke to raise interest rates and stop this insanity.


6 posted on 08/12/2009 2:19:19 AM PDT by Cheap_Hessian
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To: Proud_USA_Republican

Yep. And that’s why the second leg down is coming soon, and in a big way.


7 posted on 08/12/2009 9:47:41 PM PDT by Pelham (California, formerly part of the USA)
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