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 ...
Ping!
Many of the major financials were insolvent last year and some still are, even after all the bailouts.
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.
They never fixed the underlying problem in the first place. Someone needs to tell Bernanke to raise interest rates and stop this insanity.
Yep. And that’s why the second leg down is coming soon, and in a big way.
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