Thursday, 30 December 2010

Bailed-Out Banks Slip Toward Failure

Nearly 100 U.S. banks that got bailout funds from the federal government show signs they are in jeopardy of failing.

The total, based on an analysis of third-quarter financial results by The Wall Street Journal, is up from 86 in the second quarter, reflecting eroding capital levels, a pileup of bad loans and warnings from regulators. The 98 banks in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program

If we consider the real economic situation in the United States, as opposed to the cooked official figures, and the past record of banking finance disclosure, you can bet that the number of destined to fail banks is going to be MANY TIMES that which is reported here.

[Posted at the SpookyWeather blog, December 30th, 2010.]

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