Friday, December 31, 2010

Nearly 100 Bank Beneficiaries of TARP Funds at Risk of Failure

Nearly 100 Bank Beneficiaries of TARP Funds at Risk of Failure

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The Wall Street Journal has been keeping tabs on the fiscal health of bailed out banks--the ones receiving TARP money during the apex of the financial crisis. And the results aren't the pretty picture of recovery one would hope.

They've found through reporting that more and more of these beneficiary banks are backsliding towards insolvency.

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.

Meanwhile, the official list of "troubled" banks by the FDIC has also grown.

Read more at the WSJ and Daily Beast's Cheat Sheet.

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