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News Link • Economy - Economics USA

Some bailed-out banks may fail anyway

• The Lookout
Ninety-eight banks that took in $4.2 billion under the Treasury Department's Troubled Asset Relief Program are in jeopardy of failing, according to a study of third-quarter financial results by the Wall Street Journal. That's up from 86 banks based on second-quarter results.

The at-risk banks suffer from eroding capital levels, a pileup of bad loans and warnings from regulators. The extent of the problems suggests that some of the banks were in trouble even before the financial crisis that prompted the bailout. That finding runs counter to the government's pledge at the time that TARP would only help banks that were fundamentally sound.


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