US Banking Crisis Far From Over, Congress Warns

This is a few days old, but I’m still sort of surprised to learn that Congress has warned anyone of the banking crisis being “far from over”.

From TruthOut:

Congressional panel warns that if unemployment remains high and the property market continues to crumble, banks will still incur further losses on bad assets.

Toxic assets on the balance sheets of hundreds of American banks remain a “substantial danger” to the financial system and could yet drive institutions to collapse, a congressional watchdog warned on Tuesday in a report urging against any complacency that the banking crisis may be drawing to a close.

A congressional oversight panel charged with scrutinizing the Treasury’s $700 billion (£423 billion) bailout efforts said smaller banks, which were not examined in recent government “stress tests”, are at particular risk as the ongoing US recession pushes an increasing number of commercial property loans into default.

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